Comprehensive Annual Financial Reportny the basic fin nsmittal is de found immedi ntity (the City)...

Comprehensive Annual Financial Report

City of South Jordan, Utah

For Fiscal Year Ended June 30, 2013

City of South Jordan

State of Utah

Comprehensive Annual Financial Report

For the Fiscal Year Ended June 30, 2013

PREPARED BY THE FINANCE DEPARTMENT

SUNIL K. NAIDU, DIRECTOR OF FINANCE KYLE MAURER, CONTROLLER

AMY HARRINGTON, CITY TREASURER STEPHANIE CARTER, ACCOUNTING TECHNICIAN

BRIAN FREEMAN, SENIOR ACCOUNTANT SHEHAN JARO, ACCOUNTANT

LEAH HARDY, ACCOUNTS PAYABLE TECHNICIAN

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City of South Jordan Comprehensive Annual Financial Report i

City of South Jordan, Utah Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013

Table of Contents

Page

INTRODUCTORY SECTION ..................................................................................................................... 1 Letter of Transmittal .......................................................................................................................... 2 Certificate of Achievement for Excellence in Financial Reporting ................................................... 7 Organizational Chart .......................................................................................................................... 8 Elected and Appointed Officials ........................................................................................................ 9

FINANCIAL SECTION ......................................................................................................................... 11 Report of Independent Certified Public Accountants ..................................................................... 12 Management’s Discussion and Analysis .......................................................................................... 15

BASIC FINANCIAL STATEMENTS ........................................................................................................... 29 Government‐Wide Financial Statements Statement of Net Position ....................................................................................................... 31 Statement of Activities ............................................................................................................ 32 Fund Financial Statements Governmental Fund Financial Statements Balance Sheet ................................................................................................................. 34 Statement of Revenues, Expenditures, and Changes in Fund Balances ........................ 35 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................. 36 Proprietary Fund Financial Statements Statement of Net Position .............................................................................................. 38 Statement of Revenues, Expenses, and Changes in Net Position .................................. 39 Statement of Cash Flows ................................................................................................ 40 Notes to the Financial Statements .......................................................................................... 41

REQUIRED SUPPLEMENTARY INFORMATION .......................................................................................... 73 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Fund .................................................................................................................. 74 Redevelopment Agency Fund ........................................................................................ 76 Notes to Required Supplementary Information...................................................................... 77

SUPPLEMENTARY INFORMATION ......................................................................................................... 79 Combining and Individual Fund Statements and Schedules Non‐Major Governmental Funds ............................................................................................ 80 Combining Balance Sheet .............................................................................................. 81

City of South Jordan Comprehensive Annual Financial Report ii

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................................................................................... 82 Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Debt Service – Debt Service Fund .................................................................................. 83 Capital Projects – Capital Projects Fund ........................................................................ 84 Storm Drain – Special Revenue Fund ............................................................................. 85 Community Development Block Grant – Special Revenue Fund ................................... 86 Fitness Center – Special Revenue Fund ......................................................................... 87 Municipal Building Authority – Capital Projects Fund ................................................... 88 Cemetery Perpetual Care – Permanent Fund ................................................................ 89

STATISTICAL SECTION ....................................................................................................................... 91 Net Position by Component .................................................................................................... 93 Changes in Net Position ........................................................................................................... 94 Governmental Funds – Fund Balances .................................................................................... 96 Governmental Funds – Changes in Fund Balances ................................................................. 97 Assessed/Estimate Actual Value of Taxable Property ............................................................. 99 Property Tax Rates – Direct and Overlapping Governments ................................................ 100 Principal Property Tax Payers ................................................................................................ 101 Property Tax Levied and Collections ..................................................................................... 102 Principal Sales Tax Payers ...................................................................................................... 103 Direct and Overlapping Sales Tax Rate .................................................................................. 104 Charges for Water Fees ......................................................................................................... 105 Ratios of Outstanding Debt by Type ...................................................................................... 106 Direct and Overlapping Governmental Activities Debt ......................................................... 107 Legal Debt Margin Information ............................................................................................. 108 Pledged‐Revenue Coverage ................................................................................................... 109 Demographic and Economic Statistics .................................................................................. 111 Principal Employers ............................................................................................................... 112 Full Time Equivalent City Employees by Function/Program ................................................. 113 Operating Indicators by Function/Program .......................................................................... 114 Capital Asset Statistics by Function/Program ....................................................................... 115

INTERNAL CONTROL AND COMPLIANCE REPORTS ................................................................................. 117 Report on Internal Control over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Performed In Accordance with Government Auditing Standards ........................................................ 118

Intro

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Scott

Mark S

Chuck

Brian

Steve

Larry

John H

First in

L. Osborne, Ma

Seethaler, Coun

k Newton, Coun

Butters, Counc

Barnes, Counc

Short, Council

H. Geilmann, Ci

State

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City of South Jordan Comprehensive Annual Financial Report 3

In brief, the general governmental functions include police and fire protection; park construction and maintenance; street construction and maintenance; public improvements; engineering; building inspection; planning and zoning; and administrative services. The City also operates water distribution, golf course and waste collection as enterprise funds. Economic Condition and Outlook The City of South Jordan, incorporated in 1935, is located in the southwest part of the Salt Lake Valley. The City is a rapidly growing suburban community encompassing 21.8 square miles. The City’s population is currently 56,132. We anticipate the population in South Jordan will continue to increase. The added population has placed increased demands on services, but the City has adopted a conservative approach to the expansion of these services. The general philosophy of the City is that increased revenues from existing taxes and other revenue sources must provide the base for the expansion of public expenditures. As demonstrated over the past several years, the City is committed to this philosophy. The City has not been immune to the economic issues troubling the nation. Revenues related to development have increased significantly from the previous year and the City has seen increased interest in both residential and commercial development within City boundaries. In fact, the U.S. Census Bureau recently named South Jordan the second‐fastest growing city from July 1, 2011 to July 1, 2012. During the recession, however, the City saw reduced development‐related revenue. The most significant impact of reduced revenues is evidenced in the delay of multiple capital projects within the City. Addressing the backlog of necessary projects will take many years and an improving economy. Moody’s investor service recently affirmed its current US local government outlook as “negative.” The unevenness of the economic recovery is the main reason Moody’s outlook remains negative. Moody’s also cites that other important revenue streams for local governments, such as state aid and sales taxes, have not recovered to the same extent as income or capital gains taxes have. The City continues to budget conservatively and realizes that it must create its own economy and not rely on state or federal resources.

MAJOR INITIATIVES

Key Management Practices. The City has implemented financial policies and guidelines for the purpose of providing guidance and direction in relation to financial practices. These guidelines have been a valuable resource used by elected officials and City management to maintain consistency and fiscal restraint during times of economic prosperity as well as recession. By adhering to these principals, the City has been able to keep expenditures within reasonable levels and maintain adequate fund balance reserves even during these difficult times. The policies are reviewed and adopted with the budget each year. A few of these practices are described below:

Long‐Term Financial Plan. In accordance with the City’s Key Management Practices, The City of South Jordan has put great effort into the development of a long‐term financial plan, which will address the long‐term needs of the City. The plan was put together by the Mayor and City Council, City management, and the City’s finance department. Projections are made for tax revenues, capital expenditures, and debt service for the next twenty years.

However, this plan goes farther than simply projecting revenues and expenditures. Targets have been set for what levels of property tax, sales tax, and other revenues will be necessary for long‐term stability. We have also used the plan to evaluate the fiscal sustainability of the City’s current land use and zoning plan. Analysis has been done to evaluate whether the potential future revenues from these zones will provide sufficient revenues to meet projected future expenditures. We believe this plan will be a valuable tool for us in the areas of budgeting and strategic planning.


Debt Affordability. The City of South Jordan has established a limit on the amount of general fund revenue which can be used towards debt service. This limit is established at 4 percent of general fund revenue.

Personnel Planning. Since fiscal year 2005 the City has established a 77/23 guideline for the general fund, which strives for a spending ratio of 77 percent for personnel costs and 23 percent for operating costs. The fiscal year 2014 budget incorporates a modified general fund target ratio of 75/25. The modified general fund ratio is the beginning of a collaborative process to move the general fund wages and benefits target toward a future ratio of 65/35.

Capital Projects. The City’s staff, following specific directives of the City Council and Mayor, have been involved in a variety of projects throughout the year. These projects reflect the City’s commitment to ensuring that the citizens of South Jordan are able to live and work in a desirable environment. During FY 2012‐13, the City had several significant new and ongoing projects. Some of these projects are listed below:

1. Culinary Water System. The City completed improvements to the City’s SCADA system, updated the water master plan, and completed a water rate fee study. The City began a project to replace the transite line in the Glenmoor neighborhood and has scheduled to replace the line on Brook N Lance Lane.

2. Road Projects. The City completed widening portions of 11800 South and continues yearly maintenance projects. Work was also completed on improvements to Mabey Lane. The City is also in the planning stages of widening 4800 West from Skye Drive to 10200 South.

3. Storm Drain Projects. Using storm drain impact fees and a federal grant, the City completed improvements to the Galena Canal. The City is also in the beginning stages of planning a 36‐inch storm drain line from 11300 South to 10800 South along 2700 West.

4. Parks Projects. The City continued construction on the Mystic Springs Educational Area, a nearly 1‐mile trail composed of native uplands and wetlands along the Jordan River trail. Work began on a park located in the Sunstone subdivision, and construction on the Samuel E. Holt Park is substantially complete.

Economic Development. The City Council recognizes the need to develop the City’s economic base in order to provide the necessary services, i.e., recreation, roads, water, etc. to its citizens. Efforts are being made by the City to attract new businesses and to promote the type of activities that will enhance the quality of life in the community. These businesses include restaurants, office buildings, and industrial.

The South Jordan Redevelopment Agency was established for the purpose of encouraging new development within the City. The Agency currently has seven redevelopment areas (RDA’s), four economic development areas (EDA’s), and three community development areas (CDA’s). These areas have been successful in assisting several new office, retail, and industrial businesses within the RDA boundaries.

One of the largest RDA’s is the “District”. This area has 1.2 million square feet of retail space. Current tenants include Harmon’s, Gordman’s, Target, JC Penney, LHM Megaplex 20, Famous Footwear, and Hobby Lobby. The success of this development demonstrates the City’s dedication to the establishment of long‐term, sustained economic growth. The City will continue to encourage development through the use of redevelopment areas.


FINANCIAL INFORMATION

South Jordan’s financial statements reflect the rapid growth of the City. As in previous years, the City is able to maintain reserve funds in excess of the minimum required by State code. From fiscal year 2010 to 2013, the City’s governmental funds revenues increased from $42,815,371 to $55,639,392, and expenditures remained relatively flat, going from $43,677,418 to $44,635,809. Growth in proprietary funds has increased during this period as well. Proprietary fund revenues increased from $13,478,932 to $20,975,406, while operating expenses rose from $11,676,775 to $16,977,012. As a recipient of federal and state financial assistance, the City is also responsible for ensuring an adequate internal control structure and to document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluations. The audit for the fiscal year ended June 30, 2013, disclosed no instances of internal control weaknesses. The City’s budget serves as the foundation for its financial planning and control. City Management prepares a proposed annual budget which is presented to the City Council for review no later than the first council meeting in May. The Council is required to hold a public hearing on the proposed budget and to adopt the final budget prior to June 22, unless the City proposes a property tax rate in excess of its certified tax rate. In that case, a tentative budget is adopted and is in force until a public hearing is held to approve the increase. A budget is prepared for each fund, and the General Fund is further divided into departments. Department heads may make transfers of appropriations within a department. Transfers of appropriations or increases in revenues require the approval of the City Council. Activities of the general fund, special revenue funds, debt service funds, and capital project funds are included in the annual appropriated budget. The level of budgetary control (i.e., the level where expenditures cannot legally exceed the appropriated amount) is at the department level within the General Fund and the fund level for all other funds. As demonstrated by the statement included in the financial section of this report, the City continues to meet its responsibility for sound financial management.

OTHER INFORMATION

Independent Audit State statutes require an annual audit by independent certified public accountants. The firm of Piercy, Bowler, Taylor, & Kern was selected by the City’s Audit Committee to perform this audit. This audit was designed to meet the requirements set forth in the Utah state statutes. Generally accepted auditing standards and the standards set forth in the General Accounting Office’s Government Auditing Standards were used by the auditors in conducting the engagement. The auditor’s report on the financial statements is included in the financial section of this report. In addition, the City is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act and U.S. Office of Management and Budget Circular A‐133, Audits of States, Local Governments, and Non‐Profit Organizations. The standards governing single audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on the administration of federal awards. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditor’s reports on the internal control structure and compliance with applicable laws and regulations are published under separate cover.

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City of Sou

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City of South Jordan, Utah List of Elected and Appointed Officials

As of June 30, 2013

Elected Officials:

Mayor Scott L. Osborne, Councilmember Mark Seethaler, Councilmember Chuck Newton, Councilmember Brian C. Butters,

Councilmember Steve Barnes, Councilmember Larry Short

Appointed Officials: John H. Geilmann ................................................................................................ City Manager I. Robert Wall ...................................................................................... Assistant City Manager Gary L. Whatcott ................................................................................. Assistant City Manager Clinton E. Balmforth ............................................................................. Municipal Court Judge Amy Harrington .................................................................................................. City Treasurer Anna West ........................................................................................................... City Recorder

Fin

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Independent Auditor’s Report


CITY OF SOUTH JORDAN, UTAH MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of South Jordan, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for fiscal year ended June 30, 2013. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page 2 of this report. FINANCIAL HIGHLIGHTS

The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2013 by $347,228,858 (net position). Of this amount, $56,279,267 (unrestricted net position) may be used to meet the government’s ongoing obligations to citizens and creditors.

Total net position of the City of South Jordan increased by $17,503,968. Of this increase, $11,741,127 (67.1 percent) is attributable to governmental activities, mainly from donated capital assets and increased revenues due to a recovering economy. Business‐type activities provided a $5,762,841 increase to the City’s net position primarily due to planned increases in net position to fund future capital projects and greater than anticipated charges for services in the water fund.

As of the close of fiscal year 2013, the City’s governmental funds reported combined ending fund balances of $44,648,662, an increase of $11,190,807 (33.4 percent). The majority of fund balance is assigned to capital projects (44.3 percent) and Redevelopment Agency projects and commitments (27.2 percent).

At the end of fiscal year 2013, unassigned fund balance of the general fund was $5,988,567, or 22.5 percent of general fund expenditures (excluding transfers out). Utah state law allows any balance in excess of 5 percent of the total revenues to be utilized for budget purposes. The maximum fund balance allowed is 25 percent of next fiscal year’s estimated revenues. The City’s General Fund balance is currently at 20.1 percent of next year’s budgeted revenues.

The City’s total long‐term obligations decreased $3,716,285 (4.9 percent). This is largely due to regularly scheduled debt service payments.


REPORT OVERVIEW

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government‐wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements. GOVERNMENT‐WIDE FINANCIAL STATEMENTS

Government‐wide financial statements are designed to provide readers with a broad overview of the City’s finances in a manner similar to a private‐sector business. The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. However, other non‐financial factors should also be considered. The Statement of Activities presents information showing how the City’s net position changed during the fiscal year. All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are taken into account regardless of when cash is received or paid. Both of the government‐wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business‐type activities). The governmental activities of the City include general government, community development, public works, public safety, and parks, recreation, and culture. The business‐type activities of the City include water, sanitation, and Mulligan’s Golf & Games (Mulligan’s). The government‐wide financial statements can be found on pages 31‐32 of this report. FUND FINANCIAL STATEMENTS

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City also uses fund accounting to ensure and demonstrate compliance with finance‐related requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds.


Governmental Funds – Governmental funds are used to account for the same functions reported as governmental activities in the government‐wide financial statements. These fund statements focus on how money flows into and out of these funds and the balances left at year‐end that are available for spending. Such information may be useful in evaluating a government’s near‐term financing requirements. Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understand the long‐term impact of the government’s near‐term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Governmental funds report the difference between their assets, deferred outflows of resources, liabilities, and deferred inflows of resources as fund balance, which is divided into nonspendable, restricted, committed, assigned, and unassigned portions. Nonspendable includes inventories and long‐term notes receivable that are not expected to be converted to cash. Restricted includes net fund resources of the City that are subject to external constraints due to state or federal laws or externally imposed conditions by grantors or creditors. Restrictions include bond proceeds designated for specific projects, debt service reserve requirements, and grant proceeds. Committed balances reflect the City’s self‐imposed limitation on the use of otherwise available expendable financial resources in governmental funds. Assigned balances in the general fund and other governmental funds are those that do not meet the requirements of restricted or committed but are intended to be used for specific purposes. Unassigned balances in the general fund are all other available net resources. At June 30, 2013, the City’s combined governmental fund balance is $44,648,662 ($67,969 in nonspendable, $8,687,415 in restricted, $436,800 in committed, $29,767,911 in assigned, and $5,988,567 in unassigned fund balances). Governmental funds are reported using an accounting method called modified accrual accounting, which measures cash and other financial assets readily convertible to cash. The governmental fund statements provide a detailed short‐term view of the City’s general government operations and the basic services it provides. Governmental fund information helps users determine the financial resources that can be spent in the near future to finance the City’s programs. The relationship (or differences) between governmental activities and governmental funds is detailed in a reconciliation included with the fund financial statements. The City maintains the following nine individual governmental funds:

General

Debt Service

Redevelopment Agency (RDA)

Capital Projects


Storm Drain

Community Development Block Grant (CDBG)

Fitness Center

Municipal Building Authority (MBA)

Cemetery

Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General, Debt Service, Redevelopment Agency, and Capital Project funds, all of which are considered to be major funds. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non‐major governmental funds is elsewhere in this report. The basic governmental fund financial statements can be found on pages 34‐35 of this report. Proprietary Funds – The City maintains one type of proprietary fund, enterprise funds. Enterprise funds are used to report the same functions presented as business‐type activities in the government‐wide financial statements. The City uses enterprise funds to account for its water utility, sanitation services, and Mulligan’s. Proprietary funds provide the same type of information as the government‐wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for water, Mulligan’s, and sanitation. Water and Mulligan’s are considered to be major funds and sanitation is considered to be a nonmajor fund. The basic proprietary fund financial statements can be found on pages 38‐40 of this report. Notes to the financial statements – The notes provide additional information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements. The notes to the financial statements begin on page 41 of this report. Required Supplementary Information (RSI) – This section contains budget to actual comparison statements for the City’s general fund as well as its only major special revenue fund, which is the RDA. The RSI section begins on page 74. Other Information – In addition to the above mentioned statements and reports, this report also presents other supplementary information and a statistical section which give additional and more detailed information to the reader. The supplemental section includes individual fund financial statements for the City’s non‐major funds as well as budget to actual statements for major funds not reported as RSI. The statistical section gives various financial and demographic data of the City, including trend analysis for certain financial data. The supplementary section begins on page 80, and the statistical section begins on page 93.


GOVERNMENT‐WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of South Jordan, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $347,228,858 as of June 30, 2013. By far the largest portion of the City’s position (78.9 percent) reflects its investments in capital assets (e.g., land, buildings and structure, machinery and equipment, improvements, construction in progress, infrastructure, and right of way), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investments in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following table summarizes the City’s net position:

An additional portion of the City’s net position (4.9 percent) represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted

2013 2012 2013 2012 2013 2012

Current and Other Assets 76,096,272$ 63,114,980$ 29,440,741$ 24,793,395$ 105,537,013$ 87,908,375$

Capital Assets 224,651,474 224,905,409 117,605,115 118,903,653 342,256,589 343,809,062

Total Assets 300,747,746 288,020,389 147,045,856 143,697,048 447,793,602 431,717,437

Total Deferred Outflows

of Resources 576,987 626,125 635,888 695,583 1,212,875 1,321,708

Long‐Term Debt Outstanding 36,161,000 37,608,107 35,262,905 37,532,083 71,423,905 75,140,190

Other Liabil ities 5,142,894 4,910,864 1,927,542 2,132,092 7,070,436 7,042,956

Total Liabilities 41,303,894 42,518,971 37,190,447 39,664,175 78,494,341 82,183,146

Total Deferred Inflows

of Resources 23,283,278 21,131,109 ‐ ‐ 23,283,278 21,131,109

Invested in Capital Assets,

Net of Related Debt 190,745,605 190,401,077 83,077,861 82,158,412 273,823,466 272,559,489

Restricted 9,320,159 6,487,565 7,805,966 4,686,192 17,126,125 11,173,757

Unrestricted 36,671,797 28,107,792 19,607,470 17,883,852 56,279,267 45,991,644

Total Net Position 236,737,561$ 224,996,434$ 110,491,297$ 104,728,456$ 347,228,858$ 329,724,890$

Total

CITY OF SOUTH JORDAN

Business‐Type

Activities

Governmental

Activities

Summary of Net Position

For the Year Ended June 30, 2013


net position of $56,279,267 may be used to meet the government’s ongoing obligations to citizens and creditors. As of June 30, 2013, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business‐type activities. Analysis of the City’s Operations – The following table provides a summary of the City’s operations for the year ended June 30, 2013:

Governmental Activities – Governmental activities increased the City’s net position by $11,741,127. Key elements affecting governmental activities net position are as follows:

General fund revenues posted $4,401,472 above expectations during fiscal year 2013. Specifically, sales tax exceeded expectations by $1,223,486, property tax exceeded expectations by $796,535, energy sales & use tax exceeded expectations by $431,151, ambulance fees exceeded expectations by $306,828, and permits exceeded

2013 2012 2013 2012 2013 2012

Revenues

Program revenues:

Charges for Services 17,574,854$ 16,713,427$ 21,188,166$ 19,584,241$ 38,763,020$ 36,297,668$

Operating Grants and Contributions 2,560,591 2,104,024 ‐ ‐ 2,560,591 2,104,024

Capital Grants and Contributions 4,764,233 4,130,047 2,955,905 1,437,347 7,720,138 5,567,394

General Revenues:

Property Taxes 21,559,693 19,339,283 ‐ ‐ 21,559,693 19,339,283

Other Taxes 13,011,432 12,762,558 ‐ ‐ 13,011,432 12,762,558

Other 233,224 380,297 ‐ ‐ 233,224 380,297

Total Revenues 59,704,027 55,429,636 24,144,071 21,021,588 83,848,098 76,451,224

Expenses:

General Government 17,389,131 15,502,901 ‐ ‐ 17,389,131 15,502,901

Community Development 3,291,558 3,137,078 ‐ ‐ 3,291,558 3,137,078

Public Works 10,800,864 10,680,313 ‐ ‐ 10,800,864 10,680,313

Public Safety 10,592,624 10,593,261 ‐ ‐ 10,592,624 10,593,261

Parks, Recreation, and Culture 4,432,215 3,194,554 ‐ ‐ 4,432,215 3,194,554

Interest on Long‐Term Debt 1,446,215 1,599,655 ‐ ‐ 1,446,215 1,599,655

Water ‐ ‐ 14,711,214 14,600,787 14,711,214 14,600,787

Sanitation ‐ ‐ 2,737,800 2,753,324 2,737,800 2,753,324

Mulligans ‐ ‐ 1,076,915 1,104,589 1,076,915 1,104,589

Total Expenses 47,952,607 44,707,762 18,525,929 18,458,700 66,478,536 63,166,462

Gain on Sale of Capital Assets 89,002 51,222 45,404 10,000 134,406 61,222

Increase (Decrease) in Net

Assets Before Transfers 11,840,422 10,773,096 5,663,546 2,572,888 17,503,968 13,345,984

Transfers (99,295) (44,100) 99,295 44,100 ‐ ‐

Increase in Net Position 11,741,127 10,728,996 5,762,841 2,616,988 17,503,968 13,345,984

Net Position, Beginning (Restated) 224,996,434 214,267,438 104,728,456 102,111,468 329,724,890 316,378,906

Net Position, Ending 236,737,561$ 224,996,434$ 110,491,297$ 104,728,456$ 347,228,858$ 329,724,890$


Summary of Changes in Net Position

Activities Total

For the Period Ended June 30, 2013

Governmental

Activities

Business‐type

City of Sou

exlo

Treye

Tre

Dpsiece$$

Business‐$5,762,8elements

Din(spmca

Wa

uth Jordan Com

xpectations ower than an

he City receevenue is noears.

he Redeveloevenues dur

During fiscal yrojects whicignificant proquipment ($enter buildin910,093 in s325,045 in s

‐Type Activit41, which res of the chan

During fiscal yncludes $264supervisory carts storage

machinery anapitalized du

While operatllowed Mull

mprehensive An

by $831,340nticipated in

ived $3,845,ot spent in th

opment Agenring the year

year 2013, tch includes $ojects includ$311,426), Gng improvemsidewalks, $8street lights.

ties – Busineepresents annge in busine

year 2013, t4,054 startedcontrol and enclosure, $nd equipmenuring the fisc

ing revenueigan’s to inc

nnual Financia

0. In additionn the budget

,738 in impahe year rece

ncy spent $2r.

he City’s gov$392,220 of de 118th SouGalena Canalments ($259817,559 in c

ess‐type actin increase ofess‐type net

he City comd in prior yedata acquisi$279,937 font. In additiocal year.

of $1,229,4rease busine

l Report

n, the genert.

act fee revenived; rather

2,000,162 le

vernmental projects thath Widening storm drain,579). Donaturb & gutter

vities increaf $3,145,853t position are

pleted $2,61ars. Notableition) systemr fire flow pon, $1,409,1

420 was beloess‐type act

ral fund’s ex

nue during thr it is budget

ss than rece

funds compat began in pg ($360,849)n improvemeted assets inr, $270,840

ased the City3 over the pre as follows

15,193 in cae projects inm improvemrojects, and89 of donate

ow expectatiivities net po

penditures w

he fiscal yeaed for proje

eived in tax i

pleted $8,299prior years. T), police vehents ($363,2nclude $2,44in storm dra

y’s net positirevious year:

pital projectclude $372,5ents, $204,0 $129,769 foed water lin

ions, carefulosition by $2

were $2,018

ar. Impact fects in future

ncrement

9,967 of capThe most icles and 267), and fitn40,695 in roaain, and

on by ’s change. K

ts, which 550 for SCAD058 for a waor water es were

l spending 256,240.

21

8,063

e e

pital

ness ads,

ey

DA ater

City of Sou

TTinre

Worep

FUND FIN

Governmnear‐termassessinga useful myear. As of JunRDA, andan increatotal funat the CitCity inten(RDA), caperpetuafund balabalance obecause and arts receivab

uth Jordan Com

he sanitatiohe majority ncrease in neesidential gr

Water fund of impact feeevenue in throjects.

NANCIAL AN

mental Fundm inflows, og the City’s fmeasure of a

ne 30, 2013, d nonmajor fase of $11,19d balance coty’s discretionds to use thapital projecal care, risk mance totals $of $8,687,41it has alread& cultural dle ($28,092)

mprehensive An

n fund controf this increet position ($rowth within

operating reve revenue wahe year colle

NALYSIS

s ‐ The focusutflows, andfinancing reqa governme

The City’s gofunds) repor90,807 fromonstitutes unon. Assignedhis amount fts, storm dramanagemen$436,800, w15 (19.5 percdy been comevelopmentwhich are c

nnual Financia

ributed $161ease is due to$92,277) ann the City.

venues exceas received. cted. Collect

s of the City’d balances oquirements. nt’s net reso

overnmentarted combinm last year’s enassigned fud fund balancfor specific pain projects,t, employeehich the Citycent) is restrmmitted to pat. The City alclassified as n

l Report

1,835 to theo the City’s pd revenues e

eded expectThe City doetions are use

’s governmef spendable In particularources availa

al funds (Gened fund balaending balanund balancece totals $29purposes (de, fitness cente educationay intends to ricted to indiay for capitaso has invennonspendab

business‐typortion of Trexceeding e

tations by $2es not spended for future

ental funds is resources. Sr, unreserveable for spen

neral, Capitaances of $44nces. $5,988and is there9,467,911 (6ebt service, rter, municipal assistanceuse for cemicate it is noal projects, dntory ($39,8ble fund bala

ype net positrans‐Jordan xpectations

2,346,903, ad current yee impact fee

s to provide Such informed fund balannding at the

al Projects, D4,648,662. T8,567 (13.4 pefore availab66.0 percentredevelopmpal building a & recogniti

metery perpeot available fdebt service,77) and longance.

tion increaseLandfill’s due to

and $1,546,7ar impact fee eligible

informationation is usefnce may serend of the f

Debt Service,his represenpercent) of tble for spend), meaning tent agency authority (Mon). Commitetual care. Fufor new spen, public safeg‐term notes

22

e.

716 ee

n on ful in rve as fiscal

, nts the ding the

MBA), tted und nding ty, s

City of Sou

General FThe Genebe accoua matchiother finyear. Unrof $5,522 Taxes copercent owhich rerevenuesyear end

General 2013. Exppercent (defined b The follo

uth Jordan Com

Fund eral Fund is tunted for in sng of revenuancing sourcrestricted ge2,560 to the

ntinue to beof total genepresents 43s. This comped June 30,

Fund expendpenditures r(depending obenefit incre

wing chart c

mprehensive An

the chief opseparate funues and expeces & uses) eeneral fund bcapital proj

e the largest eral fund rev.8 percent oares with 272012.

ditures remaremained flaon years of seases rangin

compares ge

nnual Financia

perating fundnds either byenditures arexceeded exbalance wasects fund wa

source of revenues. The of total tax re7.9 percent o

ained flat, goat despite a mservice), 3.0g from 3.7 p

eneral fund e

l Report

d of the Cityy state or locre accountedxpenses in ths increased bas complete

evenue in thlargest comevenues andof total gene

oing from $2merit wage ipercent hea

percent to 7.

expenditure

. All activitiecal ordinancd for in this fhe general fuby $800,000 ed to finance

e General Fuponent of tad 29.2 perceeral fund rev

26,636,222 iincrease froalth insuranc.8 percent in

s by functio

es which are e or by a defund. Revenund by $898during the ye future capi

und and repax revenue int of total gevenues in th

n 2012 to $2m 0.85 percce premiumn 2013.

n between 2

not requiresire to mainues (includin8,729 duringyear. A transital projects.

present 66.5s sales tax, eneral fund e prior fisca

26,634,123 icent to 2.55 m increase, an

2012 and 20

23

d to tain ng g the sfer .

l

in

nd

013:


Other Governmental Funds Highlights from the City’s other governmental funds show indicators of a growing city and recovering local economy. During fiscal year 2013, property tax collections from redevelopment areas increased 9.5 percent to a total of $12,301,882 during the same period. RDA fund balance increased $2,000,162 to a total of $12,158,156 (19.7 percent increase). Fund balance will be used for future redevelopment related housing and capital projects and to fulfill RDA project commitments. Total payments for debt service in the debt service fund decreased from $4,584,906 in 2012 to $2,021,337 in 2013. This decrease is attributable to retiring the 2001 Sales Tax Revenue Bonds ($1,560,000) and Zions Note Payable ($103,243) early in fiscal year 2012 along with regularly scheduled debt service payments. Fund balance in the capital projects fund increased $6,575,325 from $13,186,036 to $19,761,361. Of this amount, $6,739,684 (34.1 percent) is restricted for impact fee eligible capital projects. Assigned fund balance increased $4,716,425 (57.0 percent) to $12,993,585. This increase is attributable to a year‐end transfer from the general fund ($5,522,560) for future capital projects. A total of $2,223,488 in capital projects were completed in the capital projects fund during fiscal year 2013 (excluding donated infrastructure). The City has current construction commitments of $5,929,136 which are not expected to affect the fund resources available for future use. Storm drain revenue was $107,023 above expectations during fiscal year 2013 mainly due to increased residential and commercial development. In addition, capital outlay expenditures were $827,571 below expectations. These projects will be completed in future years. These factors led to an increase in storm drain fund balance of $1,061,587 (66.1 percent). Fund balance will be used to comply with federal storm water mandates and to improve the City’s storm drain system. Fund balance in the fitness center fund increased $173,773 (18.5 percent) during fiscal year 2013. Charges for services exceeded expectations by $79,577 and a $293,645 transfer in from the Municipal Building Authority fund was used for capital project improvements. The majority of the fund balance increase will be used for future fitness center capital projects. Fund balance in the Municipal Building Authority fund decreased $343,560 during the fiscal year. This is due to unspent bond proceeds ($330,475) being transferred to the Fitness Center and Mulligans fund for capital project improvements. Enterprise Funds ‐ The City’s proprietary funds provide the same type of information found in the government‐wide financial statements, but in more detail. In summary, unrestricted net position increased from $13,939,521 to $15,375,732 in the water fund; increased from $39,673 to $92,430 in the Mulligans fund; and increased from $3,904,658 to $4,139,308 in the sanitation fund.


Water rates were adjusted in prior years to keep pace with the City’s increased cost to purchase water and to fund capital projects. During fiscal year 2013 a water rate study was completed which determined the current rates are sufficient to cover identified projects in the March 2012 culinary water master plan. This adjustment largely accounts for the increase in water fund unrestricted net position, which will be used in future years on capital projects. During fiscal year 2013, a total of $1,894,551 of capital assets were added (net of projects started in prior years). Water accounts receivable decreased $350,029 during the fiscal year due to increased collection efforts and a comprehensive analysis of all inactive accounts with balances. Other factors have already been discussed in the discussion of South Jordan’s business‐type activities. GENERAL FUND BUDGETARY HIGHLIGHTS

During the fiscal year, general fund budgeted expenditures were amended from an original budget total of $28,083,895 to a final budget total of $28,652,186 (2.0 percent difference). All departments monitor their budgets closely and are required to stay within their allotment. Budget adjustments made during the year can be summarized as follows:

General Government decreased by $138,437. The majority of this decrease was City‐wide merit increases originally budgeted in the Administration budget that were transferred to other functional areas.

Community Development increased by $225,321, largely due to merit salary increases approved with the fiscal year 2013 budget.

Public Works increased by $50,419. The majority of this increase is due to merit salary increases approved with the fiscal year 2013 budget.

Public Safety increased by $330,447 partially due to additional part‐time salaries being budgeted for additional interfacility transports, increased police officer and crossing guard salaries due to a grant from the Jordan School District, and overtime salary reimbursements.

Parks and Recreation increased by $100,541. The majority of this increase is due to merit salary increases approved with the fiscal year 2013 budget.

General fund budgeted revenues were amended from $28,825,370 to $29,271,028 (an increase of $445,658, or 1.5 percent). Highlights of this increase include:

Building permits increase of $63,850 which was used to fund credit card processing fees.

Increase of $111,775 to account for grant revenue received during the year.

Ambulance fees increase of $81,332 to fund additional part‐time salaries in the Fire department, which were needed to cover increased interfacility transport calls.


$75,000 of risk management revenue was budgeted to cover departmental claims & losses.

A total of $55,050 of Country Fest revenue was budgeted (donations, ticket sales, and other revenue).

During the year, actual revenues were greater than budgeted revenues by $4,401,472. Actual expenditures were less than budgeted expenditures by $2,018,063. A total of $5,522,560 was transferred to the capital projects fund for future projects. CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets ‐ The City of South Jordan’s investment in capital assets for its governmental and business‐type activities as of June 30, 2013 amounts to $342,256,589 (net of accumulated depreciation). This investment in capital assets includes land, water shares, buildings, improvements, machinery and equipment, construction in progress, and right of way. The total decrease in the City’s investment in capital assets for the current year was 0.45 percent (a 0.11 percent decrease for governmental activities and a 1.1 percent decrease for business‐type activities).

Major capital asset events during fiscal year 2013 include the following:

$6,173,422 in contributed infrastructure assets including $325,045 in street lights, $2,440,695 in donated roads, $817,559 in curb & gutter, $910,094 in sidewalk, $270,840 in donated storm drain infrastructure, and $1,409,189 in water lines.

Upgrades to the City’s culinary water system totaling $1,795,424 (including $264,053 in prior year projects completed during fiscal year 2013).

2013 2012 2013 2012 2013 2012

Land 57,946,016$ 58,086,228$ 12,134,910$ 12,134,910$ 70,080,926$ 70,221,138$

Water Shares ‐ ‐ 18,961,482 18,961,482 18,961,482 18,961,482

Buildings 19,462,858 20,471,109 1,238,665 1,085,139 20,701,523 21,556,248

Improvements 131,338,086 130,659,142 83,229,725 84,795,805 214,567,811 215,454,947

Machinery and Equip. 3,581,422 3,727,561 1,220,234 1,251,994 4,801,656 4,979,555

Const. in Progress 4,106,136 3,744,413 820,099 674,323 4,926,235 4,418,736

Right of Way 8,216,956 8,216,956 ‐ ‐ 8,216,956 8,216,956

Total Capital Assets 224,651,474$ 224,905,409$ 117,605,115$ 118,903,653$ 342,256,589$ 343,809,062$

Governmental

activities


June 30, 2013

Totalactivities

Business‐type

Capital Assets, Net of Depreciation


During the year, the City spent almost $2.8 million (including over $392,000 in projects started in prior years but completed in fiscal year 2013) on projects such as construction of new and/or extension of roads, improvements to park projects, storm drain improvements, and general vehicles and equipment.

As of June 30, 2013, the City had construction commitments of $5,929,136 for unfinished projects.

Additional information on the City’s capital assets can be found in note 8 on page 61‐62 of this report. Long‐term debt ‐ As of June 30, 2013, the City had total long‐term bonded debt outstanding of $67,327,000. The entirety of this amount is represented by bonds secured solely by specific revenue sources. The City has no general obligation bonds outstanding.

The City’s total bonded debt outstanding decreased by $4,240,000 during the fiscal year (5.9 percent). This decrease is due to regularly scheduled debt service. The City currently has no general obligation debt. The most recent bond ratings issued for South Jordan include: The Series 2008 Sales Tax Revenue Bonds, with a Standard & Poor’s rating of “AA” and a Fitch rating of “AA+”; the Series 2009 Water Revenue Bonds, with a Standard and Poor’s rating of “AA”; the Series 2011 MBA Lease Revenue Bonds, with a Standard & Poor’s rating of “AA” and a Fitch rating of “AA.” Fitch has rated the remaining sales tax revenue bonds “AA+” and assigned an implied “AAA” general obligation rating. Fitch specifically recognized the City’s strong reserves, consistently balanced financial performance, growing revenue base, and conservative financial policies. State statutes limit the amount of general obligation debt a governmental entity may issue to 12 percent of the “reasonable fair cash value” of property within the City. Of this percent, a maximum of 4 percent may be used for general purposes. The current limitation for the City is

2013 2012 2013 2012 2013 2012

General Obligation Bonds ‐$ ‐$ ‐$ ‐$ ‐$ ‐$

Special Assessment Debt

With Governmental Commitment 3,144 3,705 ‐ ‐ 3,144 3,705

Revenue Bonds 29,823 31,322 34,360 36,540 64,183 67,862

Total bonded debt 32,967$ 35,027$ 34,360$ 36,540$ 67,327$ 71,567$

activities Total


June 30, 2013

Governmental activities

Business‐type

General Obligation and Revenue Bonds (Expressed in Thousands)


$162,634,598, which is significantly in excess of the City’s outstanding general obligation debt. The remaining 8 percent and any unused portion of the 4 percent available for general purposes, up to the maximum of 12 percent, may be utilized for water, sewer, and electrical projects. The current limitation for all debt, including that used for water, sewer and electrical projects is thus $487,903,794, which again significantly exceeds the outstanding city‐wide debt. Additional information on the City’s long term‐debt can be found in note 10 on pages 64‐68 of this report. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET AND RATES

The 2013 unemployment rate for the City of South Jordan was 4.8 percent. This compares with a national unemployment rate of 7.6 percent. The 2012 unemployment rate for the City of South Jordan was 5.8 percent. (Source: Bureau of Labor Statistics.)

The General Fund budgeted revenues for the fiscal year ending June 30, 2014 ($30,218,748) reflect an increase of 3.2 percent over the final budgeted revenues for the fiscal year ended June 30, 2013 ($29,271,028). General fund expenditures in fiscal year 2014 are budgeted $922,708 higher than fiscal year 2013. The majority of this increase is to fund a 2 percent employee merit increase along with health insurance and defined benefit rate increases. The City is cautiously optimistic of an improving economy, but remains fiscally conservative.

Minor fee schedule changes were approved for fiscal year 2014. These increases were necessary to cover the actual cost of providing services. No property tax or utility fee increases were proposed or approved.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the City of South Jordan’s finances for all those with an interest in the City’s finances. Questions concerning any information provided in this report or requests for additional financial information should be addressed to: City of South Jordan, Finance Department, 1600 West Towne Center Drive, South Jordan, UT 84095 or call (801) 254‐3742, or e‐mail [email protected].

B

asic Finan

cial Statem

en

ts


Government‐Wide Financial Statements

Governmental Business‐type

Activities Activities Total

ASSETS

Cash and Cash Equivalents 44,163,491$ 20,546,054$ 64,709,545$

Restricted Cash 1,935,869 3,333,393 5,269,262

Receivables 29,919,579 2,938,621 32,858,200

Internal Balances 37,456 (37,456) ‐

Inventories 39,877 44,042 83,919

Other Assets ‐ 2,616,087 2,616,087

Capital Assets Net of Depreciation:

Land 57,946,016 12,134,910 70,080,926

Water Shares ‐ 18,961,482 18,961,482

Buildings 19,462,858 1,238,665 20,701,523

Improvements 131,338,086 83,229,725 214,567,811

Machinery and Equipment 3,581,422 1,220,234 4,801,656

Construction in Progress 4,106,136 820,099 4,926,235

Right of Way 8,216,956 ‐ 8,216,956

Total Assets 300,747,746 147,045,856 447,793,602

DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding 576,987 635,888 1,212,875

Total Deferred Outflows of Resources 576,987 635,888 1,212,875

LIABILITIES

Accounts Payable 1,491,341 1,465,975 2,957,316

Other Liabilities 3,170,865 176,667 3,347,532

Accrued Interest Payable 480,688 284,900 765,588

Long‐term Liabilities

Due Within One Year 3,792,901 2,349,186 6,142,087

Due in More Than One Year 32,368,099 32,913,719 65,281,818

Total Liabilities 41,303,894 37,190,447 78,494,341

DEFERRED INFLOWS OF RESOURCES

Unavailable Revenue ‐ Property Taxes 23,283,278 ‐ 23,283,278

Total Deferred Inflows of Resources 23,283,278 ‐ 23,283,278

NET POSITION

Invested in Capital Assets, Net

of Related Debt 190,745,605 83,077,861 273,823,466

Restricted For:

Capital Improvements 6,798,811 4,472,573 11,271,384

Debt Service 1,876,742 3,333,393 5,210,135

Arts and Cultural Development 7,791 ‐ 7,791

Public Safety 4,071 ‐ 4,071

Perpetual Care

Expendable 195,944 ‐ 195,944

Non‐Expendable 436,800 ‐ 436,800

Unrestricted 36,671,797 19,607,470 56,279,267

Total Net Position 236,737,561$ 110,491,297$ 347,228,858$

June 30, 2013

Statement of Net Position


The notes to the basic financial statements are an integral part of this statement.


Operating

Capital

Charges for

Grants and

Grants and

Governmen

tal

Business‐type

Expen

ses

Services

Contributions

Contributions

Activities

Activities

Total

Functions/Program

s:

Primary Governmen

t

Governmen

tal:

Gen

eral Governmen

t17,389,131

$

4,191,264

$

17,500

$

‐$

(13,180,367)

$

‐$

(13,180,367)

$

Community Developmen

t3,291,558

3,770,162

120,000

‐

598,604

‐

598,604

Public W

orks

10,800,864

6,333,077

2,180,228

4,764,233

2,476,674

‐

2,476,674

Public Safety

10,592,624

1,350,973

221,486

‐

(9,020,165)

‐

(9,020,165)

Parks, R

ecreation, and Culture

4,432,215

1,929,378

21,377

‐

(2,481,460)

‐

(2,481,460)

Interest on Long‐Term

Deb

t1,446,215

‐

‐

‐

(1,446,215)

‐

(1,446,215)

Total G

overnmen

tal A

ctivities

47,952,607

17,574,854

2,560,591

4,764,233

(23,052,929)

‐

(23,052,929)

Business‐Type:

Water

14,665,809

17,058,838

‐

2,955,905

‐

5,348,934

5,348,934

Sanitation

2,737,800

2,899,907

‐

‐

‐

162,107

162,107

Mulligan's

1,076,915

1,229,420

‐

‐

‐

152,505

152,505

Total Business‐Type Activities

18,480,524

21,188,165

‐

2,955,905

‐

5,663,546

5,663,546

Total Primary Governmen

t66,433,131

38,763,019

2,560,591

7,720,138

(23,052,929)

5,663,546

(17,389,383)

Gen

eral Reven

ues:

Property Taxes

21,559,693

‐

21,559,693

Sales and Use Tax

9,815,735

‐

9,815,735

Energy Sales and Use Tax

3,181,151

‐

3,181,151

Other Taxes

14,546

‐

14,546

Gain on Disposition of Capital Assets

89,002

‐

89,002

Unrestricted

Investmen

t Earnings

233,224

‐

233,224

Transfers

(99,295)

99,295

‐

Total G

eneral Reven

ues and Transfers

34,794,056

99,295

34,893,351

Change in

Net Position

11,741,127

5,762,841

17,503,968

Net Position ‐ Beginning, as Previously Rep

orted

225,524,496

105,381,437

330,905,933

Adjustmen

t to Net Deferred Bond Issuance Costs (Note 4)

(528,062)

(652,981)

(1,181,043)

Net Position ‐ Beginning, as Adjusted

224,996,434

104,728,456

329,724,890

Net Position ‐ Ending

236,737,561

$

110,491,297

$

347,228,858

$

City of South Jordan Comprehensive Annual Financial Report

The notes to the basic financial statemen

ts are an integral part of this statemen

t.

Net (Expen

se) Reven

ue and

Changes in Net Position

Program

Reven

ues

CIT

Y O

F SO

UTH

JO

RD

AN

Stat

em

en

t o

f A

ctiv

itie

sFor the Year Ended

June 30, 2013

32


GOVERNMENTAL FUND FINANCIAL STATEMENTS

General Fund

The general fund is used to account for the resources traditionally associated with a government which are not required legally or by sound financial management to be accounted for in another fund. Debt Service Fund

The debt service fund is used to account for the accumulation of resources and payment of bond principal and interest from governmental resources and special assessment bond principal and interest from special assessment levies when the government is obligated in some manner for the payment. Redevelopment Agency (RDA)

The RDA fund is used to account for the activities of the Redevelopment Agency. The Agency is an entity established to further public purpose in the redevelopment of particular City areas. Capital Projects Fund

The capital projects fund is used to account for the construction of budgeted capital projects of the City. Impact fees, intergovernmental grants, transfers from the general fund, and interest earnings are the principal sources of funding for these projects. Nonmajor Funds

Nonmajor governmental funds are presented by fund type beginning on page 80.

Nonmajor Total

Capital Governmental Governmental

General Debt Service RDA Projects Funds Funds

ASSETS

Cash and Cash Equivalents 7,437,805$ 258,974$ 11,863,536$ 20,059,924$ 4,543,252$ 44,163,491$

Restricted for Debt Service ‐ 1,570,157 301,305 ‐ 64,407 1,935,869

Receivables 10,877,511 3,144,000 15,579,972 26,690 291,406 29,919,579

Inventories 39,877 ‐ ‐ ‐ ‐ 39,877

Due From Other Funds ‐ ‐ ‐ 37,456 10,303 47,759

Total Assets 18,355,193$ 4,973,131$ 27,744,813$ 20,124,070$ 4,909,368$ 76,106,575$

LIABILITIES

Accounts Payable and Accrued Liabilities 995,197 ‐ 6,685 362,709 126,750 1,491,341

Construction Bonds and Refunds 3,170,865 ‐ ‐ ‐ ‐ 3,170,865

Due to Other Funds ‐ ‐ ‐ ‐ 10,303 10,303

Total Liabilities 4,166,062 ‐ 6,685 362,709 137,053 4,672,509

DEFERRED INFLOWS OF RESOURCESUnavailable Revenue ‐ Property Taxes 8,061,432 ‐ 15,579,972 ‐ ‐ 23,641,404 Unavailable Revenue ‐ Special Assessments ‐ 3,144,000 ‐ ‐ ‐ 3,144,000

8,061,432 3,144,000 15,579,972 ‐ ‐ 26,785,404

FUND BALANCESNonspendable 39,877 ‐ ‐ 28,092 ‐ 67,969 Restricted 11,862 1,570,157 301,305 6,739,684 64,407 8,687,415 Committed ‐ ‐ ‐ ‐ 436,800 436,800 Assigned 87,393 258,974 11,856,851 12,993,585 4,271,108 29,467,911 Unassigned 5,988,567 ‐ ‐ ‐ ‐ 5,988,567

Total Fund Balances 6,127,699 1,829,131 12,158,156 19,761,361 4,772,315 44,648,662

Total Liabilities, Deferred Inflows of Resources,

and Fund Balances 18,355,193$ 4,973,131$ 27,744,813$ 20,124,070$ 4,909,368$

Amounts reported for governmental activities in the statement of net assets are different because:

Capital assets used in governmental activities are not financial resources. 224,651,474

Other long‐term assets are not available to pay for current‐period expenditures. 3,502,121

Long‐term liabilities, including bonds payable, are not due and payable in the current period. (36,064,696)

Net assets of governmental activities 236,737,561$


CITY OF SOUTH JORDANBalance SheetGovernmental Funds

June 30, 2013


Nonmajor Total


General Debt Service RDA Projects Funds Funds

REVENUES

Taxes 22,407,841$ ‐$ 12,301,882$ ‐$ ‐$ 34,709,723$

Licenses and Permits 3,062,607 ‐ ‐ ‐ ‐ 3,062,607

Intergovernmental 2,036,303 ‐ ‐ 404,288 120,000 2,560,591

Charges for Services 5,074,340 ‐ ‐ ‐ 3,809,515 8,883,855

Fines and Forfeitures 769,367 ‐ ‐ ‐ ‐ 769,367

Special Assessments ‐ 728,319 ‐ ‐ ‐ 728,319

Interest 112,020 9,736 61,589 33,740 16,139 233,224

Impact Fees ‐ ‐ ‐ 3,845,738 ‐ 3,845,738

Miscellaneous 210,022 157,027 ‐ 419,103 59,816 845,968

Total Revenues 33,672,500 895,082 12,363,471 4,702,869 4,005,470 55,639,392

EXPENDITURES

Current

General Government 8,164,613 21,350 799,058 138,824 ‐ 9,123,845

Community Development 3,233,241 ‐ ‐ ‐ 38,859 3,272,100

Public Works 3,347,241 ‐ ‐ 539,379 940,061 4,826,681

Public Safety 10,138,529 ‐ ‐ 64,110 ‐ 10,202,639

Parks, Recreation, and Culture 1,750,499 ‐ ‐ 107,297 1,454,556 3,312,352

Tax Increment Distributions ‐ ‐ 6,997,878 ‐ 6,997,878

Capital Outlay and Projects ‐ ‐ 151,417 2,585,211 489,549 3,226,177

Debt Service

Principal ‐ 1,135,736 859,000 ‐ 155,000 2,149,736

Interest and Fees ‐ 885,601 347,974 ‐ 290,826 1,524,401

Total Expenditures 26,634,123 2,042,687 9,155,327 3,434,821 3,368,851 44,635,809

Excess (Deficiency) of Revenues

Over Expenditures 7,038,377 (1,147,605) 3,208,144 1,268,048 636,619 11,003,583

OTHER FINANCING SOURCES (USES)

Transfers In 134,568 1,931,796 ‐ 6,252,918 801,492 9,120,774

Transfers Out (6,290,853) ‐ (1,207,982) (1,207,835) (513,399) (9,220,069)

Sale of Capital Assets 16,637 ‐ ‐ 262,194 7,688 286,519

Total Other Financing Sources (Uses) (6,139,648) 1,931,796 (1,207,982) 5,307,277 295,781 187,224

Net Change in Fund Balances 898,729 784,191 2,000,162 6,575,325 932,400 11,190,807

Fund Balances ‐ July 1 5,228,970 1,044,940 10,157,994 13,186,036 3,839,915 33,457,855

Fund Balances ‐ June 30 6,127,699$ 1,829,131$ 12,158,156$ 19,761,361$ 4,772,315$ 44,648,662$



Governmental Funds

Statement of Revenues, Expenditures, and Changes in Fund Balance



Amounts reported for governmental activities in the statement of activities

are different because:

Net Change in Fund Balance ‐‐ Total Governmental Funds 11,190,807$

Governmental funds report capital outlays as expenditures. However,

in the statement of activities, the cost of those assets is allocated

over their estimated useful lives as depreciation expense. This is the

amount by which depreciation exceeded capital outlays in the current

period. (4,820,652)

The net effect of various miscellaneous transactions involving capital assets

(i.e., sales, trade‐ins, and donations) is to increase net position. 4,566,716

Revenues in the statement of activities that do not provide current financial

resources are not reported as revenues in the funds. (699,598)

Bond proceeds and capital leases provide current financial resources to

governmental funds by issuing debt which increases long‐term liabilities in the

statement of net position. Repayments of bond and capital lease principal are

expenditures in the governmental funds, but reduce liabilities in the statement

of net position. 1,451,486

Some expenses reported in the statement of activities do not require the use of

current financial resources and, therefore, are not reported as expenditures in

governmental funds. 52,368

Change in net position of governmental activities 11,741,127$



CITY OF SOUTH JORDANReconciliation of The Statement of Revenues,

Expenditures, and Changes in Fund Balances of Governmental Funds

To The Statement of Activities



PROPRIETARY FUND FINANCIAL STATEMENTS

MAJOR FUNDS Water Fund

The water fund is used to account for the activities of the City’s water operations. Mulligans

The Mulligans fund is used to account for the operation of Mulligan’s Golf & Games. This City recreation facility includes golf, miniature golf, a driving range, and batting cages.

NONMAJOR FUNDS Sanitation Fund

The sanitation fund is used to account for the activities of the City’s sanitation operations.

Nonmajor

Water Mulligans Sanitation

Fund Fund Fund Total

ASSETS

Current Assets

Cash and Cash Equivalents 18,988,996$ 224,160$ 1,332,898$ 20,546,054$

Accounts Receivable Net of Allowance 2,567,134 15,706 355,781 2,938,621

Inventories 32,775 11,267 ‐ 44,042

Total Current Assets 21,588,905 251,133 1,688,679 23,528,717

Noncurrent Assets

Restricted Cash 2,609,362 724,031 ‐ 3,333,393

Investment in Landfill ‐ ‐ 2,616,087 2,616,087

Capital Assets

Land 2,117,963 10,016,947 ‐ 12,134,910

Water Shares 18,961,482 ‐ ‐ 18,961,482

Buildings and Structures 1,493,756 699,800 ‐ 2,193,556

Improvements ‐ Other than Buildings 110,657,889 357,798 ‐ 111,015,687

Machinery and Equipment 1,780,485 313,543 1,237,835 3,331,863

Construction in Progress 820,099 ‐ ‐ 820,099

Less Accumulated Depreciation (29,397,875) (831,516) (623,091) (30,852,482)

Capital Assets (Net of Accum Depreciation) 106,433,799 10,556,572 614,744 117,605,115

Total Noncurrent Assets 109,043,161 11,280,603 3,230,831 123,554,595

Total Assets 130,632,066 11,531,736 4,919,510 147,083,312

DEFERRED OUTFLOWS OF RESOURCES

Deferred Charge on Refunding 635,888 ‐ ‐ 635,888

Total Deferred Outflows of Resources 635,888 ‐ ‐ 635,888

LIABILITIES

Current Liabilities

Accounts Payable 1,281,457 24,825 159,693 1,465,975

Accrued Liabilities 119,958 23,173 3,072 146,203

Interest Payable 229,691 55,209 ‐ 284,900

Construction Bonds and Refunds 30,464 ‐ ‐ 30,464

Compensated Absences 53,002 13,491 2,693 69,186

Bonds Payable 2,050,000 230,000 ‐ 2,280,000

Interfund Payable ‐ 9,364 ‐ 9,364

Total Current Liabilities 3,764,572 356,062 165,458 4,286,092

Noncurrent Liabilities

Compensated Absences 26,028 4,549 ‐ 30,577

Bonds and Leases Payable 27,943,310 4,939,832 ‐ 32,883,142

Interfund Payable ‐ 28,092 ‐ 28,092

Total Noncurrent Liabilities 27,969,338 4,972,473 ‐ 32,941,811

Total Liabilities 31,733,910 5,328,535 165,458 37,227,903

NET POSITION

Investment in Capital Assets, Net of Related Debt 77,076,377 5,386,740 614,744 83,077,861

Restricted for:

Capital Improvements 4,472,573 ‐ ‐ 4,472,573

Debt Service 2,609,362 724,031 ‐ 3,333,393

Unrestricted 15,375,732 92,430 4,139,308 19,607,470

Total Net Position 99,534,044$ 6,203,201$ 4,754,052$ 110,491,297$


Major

Business‐type Activities ‐ Enterprise Funds

CITY OF SOUTH JORDANStatement of Net Position

Proprietary Funds

June 30, 2013


Nonmajor

Water Mulligans Sanitation

Fund Fund Fund Total

OPERATING REVENUES

Charges for Services

Operations 546,515$ 1,219,431$ 2,799,787$ 4,565,733$

Pledged as Security for Revenue Bonds 16,391,308 ‐ ‐ 16,391,308

Miscellaneous 6,636 9,989 1,740 18,365

Total Operating Revenues 16,944,459 1,229,420 2,801,527 20,975,406

OPERATING EXPENSES

Costs of Services 8,675,192 793,688 2,372,289 11,841,169

General and Administrative 1,222,787 ‐ 282,765 1,505,552

Depreciation 3,490,452 57,093 82,746 3,630,291

Total Operating Expenses 13,388,431 850,781 2,737,800 16,977,012

Operating Income 3,556,028 378,639 63,727 3,998,394

NON‐OPERATING REVENUES (EXPENSES)

Increase in Joint Venture ‐ ‐ 92,277 92,277

Interest 114,379 ‐ 6,103 120,482

Gain on Sale of Capital Assets 45,404 ‐ ‐ 45,404

Interest and Fees (1,322,782) (226,134) ‐ (1,548,916)

Total Non‐Operating Revenue (Expenses) (1,162,999) (226,134) 98,380 (1,290,753)

Income Before Contributions and Transfers 2,393,029 152,505 162,107 2,707,641

CONTRIBUTIONS AND TRANSFERS

Capital Contributions, Impact Fees and Other 2,955,905 ‐ ‐ 2,955,905

Transfers In ‐ 104,204 ‐ 104,204

Transfers Out (4,168) (469) (272) (4,909)

Total Contributions and Transfers 2,951,737 103,735 (272) 3,055,200

Change in Net Position 5,344,766 256,240 161,835 5,762,841

Net Position ‐ Beginning, as Previously Reported 94,642,400 6,146,818 4,592,219 105,381,437

Adjustment to Net Deferred Bond Issuance Costs (Note 4) (453,124) (199,857) ‐ (652,981)

Net Position ‐ Beginning, as Adjusted 94,189,276 5,946,961 4,592,219 104,728,456

Net Position ‐ Ending 99,534,042$ 6,203,201$ 4,754,054$ 110,491,297$

Major


Business‐type Activities ‐ Enterprise Funds

CITY OF SOUTH JORDANStatement of Revenues, Expenses, and Changes in Net PositionProprietary Funds



Nonmajor

Water Sanitation

Fund Mulligans Fund Totals

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers and Users 17,381,654$ 1,231,104$ 2,810,884$ 21,423,642$

Payments to Suppliers (7,496,646) (308,455) (2,519,670) (10,324,771)

Interfund Services (1,222,787) ‐ (282,765) (1,505,552)

Payments to Employees (1,178,771) (488,304) (107,613) (1,774,688)

Net Cash Provided (Used) by Operating Activities 7,483,450 434,345 (99,164) 7,818,631

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

Transfers In ‐ 104,204 ‐ 104,204

Transfers Out (4,168) (469) (272) (4,909)

Net Cash Provided (Used) by Noncapital Financing Activities (4,168) 103,735 (272) 99,295

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Impact Fees 1,546,716 ‐ ‐ 1,546,716

Purchase of Capital Assets (895,192) (36,830) (9,928) (941,950)

Principal Paid on Capital Debt (1,960,000) (229,364) ‐ (2,189,364)

Interest Paid on Capital Debt (1,379,948) (232,073) ‐ (1,612,021)

Proceeds From Sale of Capital Assets 64,791 ‐ ‐ 64,791

Net Cash Used by Capital and Related Financing Activities (2,623,633) (498,267) (9,928) (3,131,828)

CASH FLOW FROM INVESTING ACTIVITIES

Interest Income 114,381 ‐ 6,103 120,484

Net Increase (Decrease) in Cash and Cash Equivalents 4,970,030 39,813 (103,261) 4,906,582

Cash and Cash Equivalents ‐ Beginning of Year 16,628,328 908,378 1,436,159 18,972,865

Cash and Cash Equivalents ‐ End of Year 21,598,358$ 948,191$ 1,332,898$ 23,879,447$

Reconciliation of Operating Income to Net Cash Provided

(Used) by Operating Activities:

Operating Income 3,556,028$ 378,639$ 63,727$ 3,998,394$

Adjustments to Reconcile Operating Income to Net Cash

Provided (Used) by Operating Activities:

Depreciation Expense 3,490,452 57,093 82,746 3,630,291

(Increase) Decrease in Receivables 350,032 ‐ 9,355 359,387

(Increase) Decrease in Inventory (98) 1,589 ‐ 1,491

Increase (Decrease) in Accounts Payable (23,257) (1,955) (256,503) (281,715)

Increase (Decrease) in Accrued Liabilities 96,640 4,556 1,082 102,278

Increase (Decrease) in Accrued Vacation and Sick Leave 13,653 (5,577) 429 8,505

Total Adjustments 3,927,422 55,706 (162,891) 3,820,237

Net Cash Provided (Used) by Operating Activities 7,483,450$ 434,345$ (99,164)$ 7,818,631$

Noncash Investing, Capital, and Financing Activities:

Contributions of Capital Assets From Developers 1,409,189$ ‐$ ‐$ 1,409,189$

Increase (Decrease) in Equity Investment in Trans‐Jordan Landfill ‐ ‐ 92,277 92,277


CITY OF SOUTH JORDANStatement of Cash FlowsProprietary Funds

For The Year Ended June 30, 2013

Major

Business‐Type Activities ‐ Enterprise Funds



Notes to the Financial Statements

CITY OF SOUTH JORDAN Notes to the Financial Statements June 30, 2013


NOTE 1 ‐ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of South Jordan (the City) financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established in GAAP and used by the City are discussed below.

A. Reporting Entity

The City of South Jordan was incorporated on November 8, 1935, under laws of the state of Utah. Under the present form of government, administrative and legislative powers are vested in a governing body, consisting of the Mayor and a five‐member City Council. They are assisted by a City Manager, who also is the City’s budget officer. The Director of Finance is currently responsible for the financial matters of the City, including money management, accounts payable, financial statements, and accounts receivable.

The City provides the following services as mandated by law: Public Safety, Judicial Services, Highways and Streets, Sanitation, Parks, Cemetery, Water, Public Improvements, Planning and Zoning, and General Administrative Services.

The Comprehensive Annual Financial Report of the City includes the financial statements for all activities of the City based upon the criteria set forth in Governmental Accounting Standards Board (GASB) statement 14. The primary criterion for including a board or agency in this report is financial accountability which determines whether an entity is a component unit of the financial reporting entity. Blended component units, although legally separate entities, are in substance, part of the government’s operations and so data from these units are combined with data of the primary government. Discretely presented component units, if any, are reported in a separate column in the combined financial statements to emphasize they are legally separate from the City. Blended Component Units The Municipal Building Authority was created by the City during fiscal year 1995 and is governed by the City’s Mayor and Council. The authority uses the proceeds of its tax‐exempt bonds to finance the construction or acquisition of general capital assets for the City. The bonds are secured by a lease agreement with the City and will be retired through lease payments from the City. The financial statements of the Municipal



Building Authority are included in the accompanying financial statements as a blended component unit.

The Redevelopment Agency is governed by a separate governing board, who are the City’s Mayor and Council. The financial statements of the Redevelopment Agency are included in the accompanying financial statements as a blended component unit. The Municipal Building Authority and the Redevelopment Agency are considered blended component units since the governing board in each case is the same governing board of the City. The Municipal Building Authority is presented as a debt service fund and the Redevelopment Agency is presented as a special revenue fund in the financial statements. Complete financial statements for each of the individual component units may be obtained at the entity’s administrative offices. City of South Jordan Municipal Building Authority 1600 West Towne Center Drive South Jordan City, Utah 84095 City of South Jordan Redevelopment Agency 1600 West Towne Center Drive South Jordan City, Utah 84095

B. Government‐Wide and Fund Financial Statements

The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business‐type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain legally separate component units, if any, for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that



are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government‐wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting and Presentation

The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The government considers all revenues available if they are collected within 60 days after the year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long‐term debt as well as expenditures related to compensated absences, claims, and judgments, which are recorded only when payment is due.

Property taxes, sales taxes, franchise taxes, and earned but unreimbursed state and federal grants associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenue of the current fiscal period. Only the portion of the special assessments receivable due within the fiscal period is considered susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government.



The government reports the following major governmental funds: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, long‐term debt principal, interest, and related costs. The Redevelopment Agency Special Revenue Fund accounts for the activities of the agency, a blended component unit of the City. The agency is an entity established to further public purpose in the redevelopment of particular City areas. The Capital Projects Fund accounts for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). The government reports the following major proprietary funds: The Water Fund accounts for the activities of the City’s water operations. The Mulligans Fund accounts for the activities of the recreation facility. Additionally the government reports the following fund types: Special Revenue Funds are used to account for proceeds of specific revenue sources (other than sources for major capital projects) that are legally restricted to expenditures for specified purposes. Permanent Funds accounts for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the reporting government’s program. As a general rule the effect of interfund activity has been eliminated from the government‐wide financial statements. Exceptions to this general rule are payments to the general fund by the various enterprise funds for providing administrative services for such funds. Elimination of these charges would distort the direct costs and program revenue reported for the various functions concerned.



Proprietary funds distinguish operating revenues and expenses from non‐operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations.

D. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund

Balance

1. Deposits and Investments The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and investments. Investments consist of amounts deposited with Utah Public Treasurers’ Investment Fund, treasury bills of the U.S. Government, money market funds, and various investment securities. Investments are stated at fair value, which approximates cost.

2. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to or due from other funds”. 3. Inventories and Prepaid Items All inventories are valued at cost using the first‐in/first‐out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government‐wide and fund financial statements. 4. Restricted Assets/Restricted Net Position

Restricted assets are comprised of cash restricted for future payments of principal and interest on debt service. It is the policy of the City to use restricted assets first and then use unrestricted assets. Restricted net position represents resources that are subject to external restrictions on how they may be used. Of the $17,126,125 reported as restricted net position in the



statement of net position, $11,212,257 is restricted due to enabling legislation ($4,472,573 governmental activities and $6,739,684 business‐type activities).

5. Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business‐type activities columns in the government‐wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation.

The costs of normal maintenance and repairs that do not add to the functionality of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business‐type activities is included as part of the capitalized cost of the assets constructed. Property, plant, and equipment of the primary government is depreciated using the straight line method over the following estimated useful lives:

Assets Years Buildings and structures 30‐50 Improvements other than buildings 20‐50 Infrastructure 30‐50 Machinery and equipment 5‐10 Furniture and fixtures 5‐10

6. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item that qualifies for reporting in this category, a deferred charge on refunding reported in the government‐wide statement of net position. A deferred charge on



refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one item, unavailable revenue, which qualifies for reporting in this category on both the government‐wide statement of net position and governmental funds balance sheet. Both statements report unavailable revenue due to property taxes, while the governmental funds balance sheet also reports unavailable revenue due to special assessments. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available.

7. Compensated Absences City employees accrue earned vacation and sick leave throughout the year. They are allowed to carry forward into the next calendar year accrued vacation up to 320 hours (number of hours carried forward depends on years of service and hire date) and all sick leave, but are encouraged to take their vacation leave within the calendar year in which it is earned. Upon termination of employment, an employee will be compensated for all unused vacation leave, but forfeits any accumulated sick leave. All vacation pay is accrued when incurred in the government‐wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. For governmental funds, any compensated absence liability has typically been liquidated by the general fund. 8. Taxes In Utah, county governments assess, levy, collect and disburse two principal types of tax: (1) personal property tax which is assessed on business assets other than real estate, and (2) tax on real estate and improvements. Business personal property and real estate taxes attach as an enforceable lien on property as of January 1st. Taxes are levied on all business personal property on January 1st and real estate and improvement taxes are levied on January 1st and are payable by November 30th. The real property taxes that are due in November are reported as a receivable from property taxes on the



financial statements. Because these taxes are not considered available to liquidate liabilities of the current period, they are offset by a deferred inflow. The City Council is authorized by state statute to levy a tax against all real and personal property located within its boundaries. The Council must set a tax rate by June 22nd each year. The County Treasurer, acting as a tax collector, must settle and disburse all tax collections to all taxing entities on a routine basis.

9. Long‐Term Obligations In the government‐wide financial statements and proprietary fund types in the fund financial statements, long‐term debt and other long‐term obligations are reported as liabilities in the applicable governmental activities, business‐type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the accrual debt proceeds received, are reported as debt service expenditures.

10. Fund Balance Beginning with fiscal year 2011, the City implemented GASB Statement 54, Fund Balance Reporting in Governmental Fund Types Definitions. The governmental fund financial statements present fund balances based on a hierarchy that shows, from highest to lowest, the level or form of constraints on fund balance resources and the extent to which the City is bound to honor them. The City first determines and reports non‐spendable balances, then restricted, then committed, and so forth. Fund balance classifications are summarized as follows:

• Nonspendable. This category includes fund balance amounts that cannot be spent because they are either a) not in spendable form or b) legally or contractually required to be maintained intact. Fund balance amounts related to inventories, prepaid expenditures, and endowments are classified as nonspendable. Nonspendable fund balance represents inventory and long‐term receivables.



• Restricted. This category includes net fund resources that are subject to external constraints that have been placed on the use of the resources either a) imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments or b) imposed by law through constitutional provisions or enabling legislation. Restricted fund balance amounts include debt service, impact fees, unspent bond proceeds, and grant revenue.

• Committed. This category includes amounts that can only be used for specific purposes established by formal action of the City Council. Fund balance commitments can only be removed or changed by the same type of action (for example, resolution) of the City Council. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The committed fund balance includes amounts for cemetery perpetual care.

• Assigned. This category includes governmental fund balance amounts that the City intends to be used for a specific purpose but are neither restricted nor committed. This intent is expressed by written approval of the City’s administration comprised of the City’s leadership council. This category also includes the remaining positive fund balance for other governmental funds. The City has assigned the following: Risk management training programs, employee education assistance, employee recognition, debt service, redevelopment, capital projects, storm drains, fitness center, debt service, and perpetual care.

• Unassigned. Residual balances in the general fund are classified as unassigned.

When an expenditure is incurred for which amounts from both restricted and unrestricted resources could be used, it is the City’s policy to use restricted resources first before using unrestricted resources. Further, when components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, then assigned, and finally unassigned.

The City does not have a formal minimum fund balance policy. The City adheres to Utah Code § 10‐6‐116(4) which requires a minimum fund balance of 5 percent of total revenues to be maintained in the general fund. For fiscal year 2013, this amount is $1,683,625. Below is fund balance detail for each category of fund balances in the governmental funds:



11. Use of Estimates Presenting financial statements in conformity with Generally Accepted Accounting Principles requires management to make certain estimates concerning assets, liabilities, revenues, and expenses. Actual results may vary from these estimates.

NOTE 2 – RECONCILIATION OF GOVERNMENT‐WIDE AND FUND FINANICAL STATEMENTS

A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government‐Wide Statement of Net Position

The governmental fund balance sheet includes a reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government‐wide statement of net position.

This difference primarily results from the long‐term economic focus of the statement of net position versus the current financial resources focus of the governmental fund balance sheets.

Nonmajor Total


FUND BALANCES General Debt Service RDA Projects Funds Funds

Nonspendable

Inventory 39,877 ‐ ‐ ‐ ‐ 39,877

Long‐term Note Receivable ‐ ‐ ‐ 28,092 ‐ 28,092

Restricted

Debt Service ‐ 1,570,157 301,305 ‐ 5,280 1,876,742

Impact Fees ‐ ‐ ‐ 6,739,684 ‐ 6,739,684

Capital Projects ‐ ‐ ‐ ‐ 59,127 59,127

Arts and Cultural Development 7,791 ‐ ‐ ‐ ‐ 7,791

Public Safety 4,071 ‐ ‐ ‐ ‐ 4,071

Committed ‐ ‐ ‐ ‐ 436,800 436,800

Assigned

Risk Management 16,000 ‐ ‐ ‐ ‐ 16,000

Employee Education Assistance 11,393 ‐ ‐ ‐ ‐ 11,393

Employee Recognition 60,000 ‐ ‐ ‐ ‐ 60,000

Debt Service ‐ 258,974 ‐ ‐ ‐ 258,974

RDA ‐ ‐ 11,856,851 ‐ ‐ 11,856,851

Capital Projects ‐ ‐ ‐ 12,993,585 ‐ 12,993,585

Storm Drain Projects ‐ ‐ ‐ ‐ 2,667,129 2,667,129

Fitness Center ‐ ‐ ‐ ‐ 1,111,126 1,111,126

MBA ‐ ‐ ‐ ‐ 296,909 296,909

Perpetual Care ‐ ‐ ‐ ‐ 195,944 195,944

Unassigned 5,988,567 ‐ ‐ ‐ ‐ 5,988,567

Total Fund Balances 6,127,699$ 1,829,131$ 12,158,156$ 19,761,361$ 4,772,315$ 44,648,662$



Capital related items:

When capital assets (property, plant, and equipment) that are to be used in governmental activities are purchased or constructed, the costs of these assets are reported as expenditures in governmental funds. However, the statement of net position includes those capital assets among the assets of the City as a whole.

Cost of capital assets $310,980,839 Accumulated depreciation ( 86,329,365)

Net adjustment to increase fund balance ‐ total governmental funds to arrive at net position ‐ $224,651,474 governmental activities

Long‐term debt transactions:

Long‐term liabilities applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities in the fund statements. All liabilities (both current and long‐term) are reported in the statement of net position.

Bonds payable $ 32,967,000 Deferred refunding bond reacquisition costs (to be

amortized over life of original debt) ( 576,986) Bond premium (to be amortized to interest income) 231,215 Accrued interest payable 480,683 Capital lease payable 189,794

Compensated absences 1,622,806 Claims and judgments 1,150,184 Net adjustment to reduce fund balance – total governmental

funds to arrive at net position – governmental activities $ 36,064,696



Long Term Assets: Long term assets applicable to the City’s governmental activities which are not available to pay expenses of the current period are deferred in the fund statements. However in the statement of net position, the charges were reported as revenue when earned.

Special assessments $ 3,144,000 Delinquent property taxes 358,121 Net adjustment to increase fund balance – total governmental funds to arrive at net position – governmental activities $ 3,502,121

B. Explanation of Certain Differences Between the Governmental Fund Statement of

Revenues, Expenditures, and Changes in Fund Balances and the Government‐Wide Statement of Activities

The governmental fund statement of revenues, expenditures and changes in fund balances includes a reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government‐wide statement of activities. One element of that reconciliation explains that “governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.”

Capital outlay $3,143,514 Depreciation expense ( 7,964,166) Net adjustment to decrease net changes in fund balances‐ total governmental funds to arrive at changes in net position of governmental activities ($4,820,652)

Another element of that reconciliation states that “The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade‐ins, and donations) is to increase net position.”

In the statement of activities, only the gain on the sale of

capital assets is reported. However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balance by the cost of the capital assets sold. ($ 197,517)



Capital assets donated by outside parties are recorded as revenues in the statement of activities, thus net position increases by the value of the donated assets 4,764,233 Net adjustment to increase net changes in fund balances – total governmental funds to arrive at changes in net position of governmental activities $4,566,716

Another element of that reconciliation states that revenues in the statement of activities that do not provide current financial resources are not reported as revenues and are shown as a deferred inflow of resources in the funds. However, in the statement of activities revenue is reported when earned. Thus, the change is to reduce revenue by the amount of the previously reported revenue and to increase revenue by the amount of accrued revenue.

Special assessments ($ 561,000)

Delinquent property taxes ( 138,598) Net adjustments ($ 699,598)

Another element of that reconciliation states “The issuance of long‐term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long‐term debt consumes the current financial resources of governmental funds”. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.

Debt issued or incurred: Claims and judgments ($ 771,518)

Deferred refunding costs amortization ( 49,133) Total debt incurred ( 820,651) Principal payments

Capital leases $ 89,736 MBA revenue bonds 155,000 Sales tax refunding bonds 50,000 Special assessment refunding bonds 561,000 Redevelopment Agency bonds 859,000 Sales tax bonds 435,000



Notes payable 100,968 Bond premium amortization 21,433 Total principal payments $2,272,137 Net adjustments to increase net changes in fund balances‐total

governmental funds to arrive at changes in net position of governmental activities $1,451,486

Another element of that reconciliation states, “Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.”

Compensated absences ($ 53,517)

Accrued interest 105,885 Net adjustment to increase net changes in fund balances – total

governmental funds to arrive at changes in net position of governmental activities $ 52,368

NOTE 3 – BUDGETS AND BUDGETARY ACCOUNTING

Annual budgets are prepared and adopted in accordance with the Uniform Fiscal Procedures Act adopted by the State of Utah. Once a budget has been adopted, it remains in effect until it has been formally revised. Furthermore, in accordance with state law, all appropriations lapse at the end of the budget year. If any obligations are contracted for and are in excess of adopted budget, they are not a valid or enforceable claim against the City. Budgets are adopted on a basis consistent with generally accepted accounting principles. All funds of the City have legally adopted budgets. The City adheres to the following procedures in establishing the budgetary data reflected in the financial statements:

A. On or before the first regularly scheduled meeting of the City Council in May, the City

manager, authorized under state statute to be the appointed budget officer, submits a proposed operation budget. The operating budget includes proposed expenditures and the means of financing them.

B. A public hearing is held at which time the taxpayers’ comments are heard. Notice of the hearing is given in the local newspaper at least seven days prior to the hearing. Copies



of the proposed budget are made available for public inspection ten days prior to the public hearing.

C. On or before June 22nd, a final balanced budget must be adopted through passage of a resolution for the subsequent fiscal year beginning July 1st.

D. Control of budgeted expenditures is exercised, under state law, at the departmental level. The City manager, however, acting as budget officer, has the authority to transfer budget appropriations between line items within any department of any budgetary fund. The City Council, by resolution, has the authority to transfer budget appropriations between the individual departments of any budgetary fund.

E. Budget appropriations for any department may be reduced by resolution. F. A public hearing as required in B.) above, must be held to increase the total

appropriations of any one governmental fund type; however, after the original public hearing, operating and capital budgets of proprietary fund types may be increased by resolution without an additional hearing.

G. Encumbrances lapse at year end. Encumbered amounts carry over to the following year

and are subject to re‐appropriation. Therefore, no encumbrances are presented in the financial statements.

During the budget year, the City modified the budget on several occasions using the above procedures.

NOTE 4 – RESTATEMENT OF NET POSITION Change in Accounting Principle The City adopted the provisions of GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, effective July 1, 2012. Statement 65 requires that debt issuance costs be recognized as an expense in the period incurred. Previously, debt issuance costs were capitalized and amortized over the life of the related debt. As a result of the adoption of this Statement, an adjustment to beginning net position was necessary to remove net deferred bond issuance costs from the balance sheet at July 1, 2012:



Governmental Activities Net Position – Beginning of year (as previous reported) $225,524,496 Adjustment to net deferred bond issuance costs (528,062)

Net Position – Beginning of year (as restated) $224,996,434

Business‐Type Activities Net Position – Beginning of year (as previously reported) $105,381,437 Adjustment to net deferred bond issuance costs ( 652,981) Net Position – Beginning of Year (as Restated) $104,728,456

NOTE 5 – CASH, CASH EQUIVALENTS AND INVESTMENTS

The City maintains a cash and investment pool that is available for use by all funds. At June 30, 2013, the City’s cash balance consisted of the following: Total Cash from All Fund Types

Cash, Cash Equivalents, and Temporary Cash Investments $69,346,063 Cash and Cash Equivalents – Permanent Fund 632,744 Total Cash and Cash Equivalents $69,978,807

While the City’s carrying amount of deposits was $69,331,599 the balance in the City’s bank account and cash on hand was $70,643,370, with the difference being due to outstanding checks and deposits in transit.

A. Custodial Credit Risk

Deposits Custodial credit risk for deposits is the risk that in the event of a bank failure, the City’s deposits may not be recovered. The City’s policy for managing custodial credit risk is to adhere to the Money Management Act. The Act requires all deposits of the City to be in a qualified depository, defined as any financial institution whose deposits are insured by an agency of the federal government and which has been certified by the Commissioner of Financial Institutions as meeting the requirements of the Act and adhering to the



rules of the Utah Money Management Council. As June 30, 2013, the deposits are as follows:

Investments Custodial credit risk for investments is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments that are in the possession of an outside party. The City does not have a formal policy for custodial credit risk of investments. The entire $65,326,982 of the City’s various investments are uninsured, unregistered, and held by the counterparty’s trust department but not in the City’s name and are therefore exposed to custodial credit risk.

B. Credit Risk Credit Risk is the risk that the counterparty to an investment will not fulfill its obligations. The City’s policy for limiting the credit risk of investments is to comply with the Money Management Act. The Act requires investment transactions to be conducted only through qualified depositories, certified dealers, or directly with issuers of investment securities. Permitted investments include deposits of qualified depositories; repurchase agreements; commercial paper that is classified as “first‐tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s investor Service or Standard and Poor’s; bankers acceptances; obligations of the US treasury and U.S. government sponsored enterprise; bonds and notes of political subdivisions of the state of Utah; fixed rate corporate obligations and variable rated securities rated “A” or higher by two nationally recognized statistical rating services as defined in the Act.

The City is authorized to invest in the Utah Public Treasurer’s Investment Fund (PTIF), an external pooled investment fund managed by the Utah State Treasurer and subject to the Act and Council requirements. The PTIF is not registered with the SEC as an investment company, and deposits in the PTIF are not insured or otherwise guaranteed by the State of Utah. The PTIF operates and reports to participants on an amortized cost

Custodial Credit Balance

Depository Account Risk June 30, 2013

Checking and Cash on Hand Insured 23,431$

Investment Sweep Insured 19,356

Investment Sweep Uninsured and

Uncollateralized 4,609,039

Total Deposits 4,651,826$



basis. The income, gains, and losses, net of administration fees, of the PTIF are allocated based upon the participants average daily balances. The following are the City’s investments as of June 30, 2013:

C. Interest Rate Risk

Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of the investment. The City manages its disclosure to declines in fair value by adhering to the Money Management Act. The Act requires that the remaining term to maturity of the investments may not exceed the period of availability of the funds to be invested. The Act further limits the remaining term to maturity of commercial paper to 270 days and fixed rate negotiable deposits and corporate obligations to 365 days or less. The City has not invested in commercial paper during 2013. Maturities of the City’s investments are noted above.

D. Concentration of Credit Risk

Concentration of credit risk is the risk of loss attributed to the magnitude of a City’s investment in a single issuer. The City’s policy to limit this risk is to adhere to the rules of the Money Management Council. The Council’s rule 17 limits investments in a single issuer of commercial paper and corporate obligations to between 5 and 10 percent depending on the total dollar amount held in the City’s portfolio at the time of purchase.

Of the City’s investments none are more than 6 percent of the portfolio in one particular issuer. Therefore, the City is within the limits established by the Council’s rule 17.

Less More Than Quality

Investments Than 1 1‐5 6‐10 10 Ratings

Collateralized Money

Market 631,013$ ‐$ ‐$ ‐$ AAA

Utah Public Treasurer's

Investment Fund 46,662,123 ‐ ‐ ‐ Unrated

U.S. Agencies 651,692 3,926,115 499,698 ‐ AA+

State/Municipal Agencies ‐ 792,996 ‐ ‐ A to AA+

Corporate Notes 7,437,640 4,725,707 ‐ ‐ A to AAA

Total Investments 55,382,467$ 9,444,817$ 499,698$ ‐$

Investment Maturities (in Years)



NOTE 6 – RECEIVABLES Receivables as of year end for the government’s individual major funds and non‐major funds in the aggregate, including the applicable allowances for uncollectible accounts, are as follows:

NOTE 7 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS

Interfund Transfers:

The City transferred monies between funds to support debt service payments in the debt service fund. Also, the City transferred monies to support related capital expenditures in the capital projects, Mulligans, and fitness center funds. Interfund Receivables / Payables During fiscal year 2012 Mulligans acquired a note with the Construction fund in the amount of $46,820 to purchase golf carts. The note will be repaid with annual principal and interest payments through July 2016. The note carries an interest rate of 3.40 percent.

Debt Nonmajor

General Service RDA Construction Water Sanitation Mulligans Governmental Total

Receivables:

Accounts 34,890$ ‐$ ‐$ 25,053$ 2,533,756$ 360,658$ 15,706$ 280,413$ 3,250,476$

Property Tax 8,192,950 ‐ 15,579,972 ‐ ‐ ‐ ‐ ‐ 23,772,922

Other Taxes 2,231,054 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 2,231,054

Special

Assessments ‐ 3,144,000 ‐ ‐ 61,948 ‐ ‐ ‐ 3,205,948

Intergovernmental 418,616 ‐ ‐ 1,637 ‐ ‐ ‐ 15,080 435,333

Less: Allowance

for Uncollectible

Accounts ‐ ‐ ‐ ‐ (28,571) (4,876) ‐ (4,086) (37,533)

10,877,510$ 3,144,000$ 15,579,972$ 26,690$ 2,567,133$ 355,782$ 15,706$ 291,407$ 32,858,200$

Capital Nonmajor Business‐

General Projects RDA Govrnmtl. Type Total

Transfer In:

General ‐$ 110,948$ 19$ 18,692$ 4,909$ 134,568$

Debt Service 71,372 1,096,887 763,537 ‐ ‐ 1,931,796

Construction 6,156,060 ‐ ‐ 96,858 ‐ 6,252,918

Nonmajor Govtl. 63,421 ‐ 444,426 293,645 ‐ 801,492

Business‐Type ‐ ‐ ‐ 104,204 ‐ 104,204

Total Transfer Out 6,290,853$ 1,207,835$ 1,207,982$ 513,399$ 4,909$ 9,224,978$

Transfer Out



NOTE 8 – CAPITAL ASSETS

Beginning Ending

Balance Increases Decreases Balance

Governmental Activities:

Capital assets not being depreciated:

Land 58,086,228$ 47,675$ 187,887$ 57,946,016$

Land Right of Way 8,216,956 ‐ ‐ 8,216,956

Construction in Progress 3,744,413 753,943 392,220 4,106,136

Total capital assets not being depreciated 70,047,597 801,618 580,107 70,269,108

Capital assets being depreciated:

Buildings 28,166,643 5,181 ‐ 28,171,824

Improvements 191,831,867 6,707,730 ‐ 198,539,597

Machinery and Equipment 13,893,774 785,438 678,902 14,000,310

Total capital assets being depreciated 233,892,284 7,498,349 678,902 240,711,731

Less accumulated depreciation for:

Buildings 7,695,534 1,013,432 ‐ 8,708,966

Improvements 61,172,724 6,028,787 ‐ 67,201,511


Total accumulated depreciation 79,034,472 7,964,165 669,272 86,329,365

Total capital assets, being depreciated, net 154,857,812 (465,816) 9,630 154,382,366

Governmental activities capital assets, net 224,905,409$ 335,802$ 589,737$ 224,651,474$

Beginning Ending

Balance Increases Decreases Balance

Business‐Type Activities:

Capital assets not being depreciated:

Land 12,134,910$ ‐$ ‐$ 12,134,910$

Construction in Progress 674,323 409,830 264,054 820,099

Water Shares 18,961,482 ‐ ‐ 18,961,482

Total capital assets not being depreciated 31,770,715 409,830 264,054 31,916,491

Capital assets being depreciated:

Buildings 1,960,145 233,412 ‐ 2,193,557

Improvements 109,220,265 1,795,422 ‐ 111,015,687


Total capital assets being depreciated 114,539,959 2,205,362 204,214 116,541,107

Less accumulated depreciation for:

Buildings 875,006 79,886 ‐ 954,892

Improvements 24,424,457 3,361,505 ‐ 27,785,962


Total accumulated depreciation 27,407,017 3,630,291 184,825 30,852,483

Total capital assets, being depreciated, net 87,132,942 (1,424,929) 19,389 85,688,624

Business‐type activities capital assets, net 118,903,657$ (1,015,099)$ 283,443$ 117,605,115$



Depreciation expense was charged to functions/programs of the primary government as follows:

Construction Commitments The City has various construction projects as of June 30, 2013 with commitments to contractors as follows:

NOTE 9 ‐ LEASE COMMITMENTS The City during 2002 executed a new lease in the amount of $1,428,000 payable in annual installments for 10 years. During 2003, the City executed a new lease in the amount of

Project

Remaining

Commitment

Park Projects 1,561,287$

Storm Drain Projects 308,306

Water Projects 2,591,658

Road Projects 1,239,151

General Projects 228,734

Total 5,929,136$


General Government 599,851$

Community Development 3,681

Parks, Recreation, and Culture 1,062,198

Public Works 5,896,348

Public Safety 402,088

Total Depreciation Expense ‐ Governmental Activities 7,964,166


Water 3,490,452

Mulligans 57,093

Sanitation 82,746

Total Depreciation Expense ‐ Business‐Type Activities 3,630,291

Total Depreciation Expense 11,594,457$



$567,577 payable in annual installments over 10 years. Also during 2003, the City executed a new lease in the amount of $291,586 payable in annual installments over 6 years. The City during 2007 executed a new lease in the amount of $304,500 payable in annual installments for 5 years. The City during 2008 executed a new lease in the amount of $610,000 payable in annual installments for 5 years. The assets acquired through capital leases are as follows:

Governmental Activities

Asset: Machinery and Equipment $3,613,308 Less: Accumulated Amortization ( 2,877,190)

Total $ 736,118 Amortization of capital assets purchased under capital leases is included in depreciation. The present value of future minimum capital lease payments under these leases as of June 30, 2013:

Governmental

Fiscal Year Amount

2014 100,319$

2015 100,319

Total Minimum Lease Payments 200,638

Less: Amounts Representing Interest (10,845)

Present Value of Minimum Lease Payments 189,793$

At June 30, 2013 the City's Capital Leases

Payable Balance Consisted of the Following:

Capital Leases Payable

Governmental

Capital Leases Payable 189,793$

Current Portion Capital Leases Payable (93,194)

Long‐Term Capital Leases Payable 96,599$



NOTE 10 ‐ LONG‐TERM DEBT Bonds and notes payable at June 30, 2013, are comprised of the following: Revenue Bonds:

2006 Sales Tax Revenue Refunding Bonds: $9,915,000 Sales Tax Revenue Refunding Bonds due in annual principal payments and semi‐annual interest payments through August 2026 ‐ Interest is at varying rates from 4.00% to 4.25%. $ 9,615,000

2003 Water Revenue Bonds:

$22,480,000 Water Revenue Bonds due in annual principal and semi‐annual interest payments through March 2024 – Interest at a varying rate from 3.00% to 5.00%. Debt was partially defeased with new bond issue. 1,025,000

2007 Water Revenue and Refunding Bonds: $21,950,000 Water Revenue Refunding Bonds due in annual principal payments and semi‐annual interest payments through November 2026 – Interest is at a varying rate from 4.00% to 5.00%. 20,275,000

2005 Municipal Building Authority Lease Revenue and Refunding Bonds: $9,505,000 Municipal Authority Lease Revenue Bonds due in annual principal and interest payments through February 2029 – Interest is at a varying rate from 3.00% to 4.00%. 5,110,000

2008 Redevelopment Agency Tax Increment Bonds: $11,242,000 Redevelopment Agency Tax Increment Bonds due in annual principal and interest payments through April 2020 – Interest is at a rate of 4.395%. 7,013,000

2008 Sales Tax Revenue Bonds:

$8,115,000 Sales Tax Revenue Bonds due in annual principal and semi‐annual interest payments through February 2024 – Interest is at a varying rate from 4.00% to 5.25%. 6,470,000



2009 Water Revenue Bonds: $10,025,000 Water Revenue Bonds due in annual principal and semi‐annual interest payments through May 2024 – Interest is at rates of 4.00% to 5.00%. $ 7,950,000

2011 Municipal Building Authority Lease Revenue and Refunding Bonds: $6,880,000 Municipal Building Authority Lease Revenue and Refunding Bonds due in annual principal and semi‐annual interest payments through Oct 2023 – Interest is at a rate of 2.00% to 3.375%. 6,725,000

Special Assessment Bond:

2007 Special Assessment Refunding Bonds: $5,770,000 Special Assessment Bonds due in annual principal and interest payments through November 2017 ‐ Interest is 3.849%. In the event that a deficiency exists because of unpaid or delinquent special assessments at the time a debt service payment is due, the City must provide resources to cover the deficiency until other resources, for example, foreclosure proceedings are received. 3,144,000

Fiscal Year Principal Interest Principal Interest

2014 1,927,000$ 1,207,037$ 2,280,000$ 1,512,171$

2015 2,007,000 1,130,939 2,365,000 1,409,859

2016 2,652,000 1,036,221 2,500,000 1,293,103

2017 2,759,000 924,634 2,590,000 1,171,071

2018 2,879,000 809,739 2,755,000 1,043,546

2019‐2023 12,469,000 2,285,481 15,305,000 3,207,014

2024‐2028 5,130,000 339,007 6,135,000 574,343

2029 ‐ ‐ 430,000 19,350

Total 29,823,000$ 7,733,057$ 34,360,000$ 10,230,457$

Revenue Bonds

Governmental Business‐Type Activities



Notes Payable:

Note Payable: $420,000 note payable on a building purchase with annual principal and interest payments through August 2012 – interest rate of 5%. $ ‐

Note Payable:

$1,150,185 note payable to URMMA. This payable is a result of insurance claims against the City. The additions reflect new insurance claims. The deductions represent payments made to URMMA. Payable over five years – due quarterly – This note bears no interest. 1,150,185

The future annual requirements for all outstanding bond and note obligations as of June 30, 2013, are as follows:

Fiscal Year Principal Interest

2014 582,000$ 121,013$

2015 605,000 98,611

2016 628,000 75,325

2017 652,000 51,153

2018 677,000 26,058

Total 3,144,000$ 372,160$

Governmental

Special Assessment Bond

Fiscal Year Principal Interest Total

2014 5,112,171$ 2,847,406$ 7,959,577$

2015 5,303,697 2,643,068 7,946,765

2016 6,010,037 2,404,648 8,414,685

2017 6,231,037 2,146,859 8,377,896

2018 6,541,037 1,879,343 8,420,380

2019‐2023 27,774,000 5,492,495 33,266,495

2024‐2028 11,265,000 913,350 12,178,350

2029 430,000 19,350 449,350

Total 68,666,979$ 18,346,519$ 87,013,497$

All Bonds and Notes



During Fiscal year 2007 the City issued $9,915,000 of Sales Tax Revenue bonds to provide resources to purchase U.S. Government State and Local Government Series Securities that were placed in an irrevocable trust for the purpose of generating resources for future debt service payments. As a result $9,240,000 of the principal was considered to be defeased and was removed from the governmental activities column of the statement of the net position. The outstanding bond principal of $9,240,000 was retired in 2012. In addition, during the fiscal year 2007 the City issued $21,950,000 of Water Revenue bonds to provide resources to purchase U.S. Government State and Local Government Series Securities that were placed in an irrevocable trust for the purpose of generating resources for future debt service payments of the Series 2000 and Series 2003 Water Revenue Bonds. As a result $15,990,000 of the outstanding principal from these two bonds was considered to be defeased and was removed from the business‐type activities column in the statement of net position. As of the balance sheet date $15,650,000 of the two bonds’ original debt is still outstanding. During fiscal year 2012 the City issued $6,880,000 of Lease Revenue bonds to provide resources to purchase U.S. Government State and Local Government Series Securities that were placed in an irrevocable trust for the purpose of generating resources for future debt service payments of the Series 2002 Lease Revenue Bonds. As a result $6,525,000 of the outstanding principal for this bond was considered to be defeased and was removed from the governmental activities column of the statement of net position. As of the balance sheet date $6,110,000 of the bonds’ original debt is still outstanding.



Changes in Long‐Term Debt

NOTE 11 ‐ RETIREMENT PLAN Plan Description. The City of South Jordan contributes to the Public Employees Contributory Retirement System, Public Safety Contributory and Noncontributory Retirement System, and Fire Fighters Retirement System which are cost‐sharing multiple‐employer defined benefit pension plans administered by the Utah Retirement Systems (Systems). Utah Retirement Systems provide refunds, retirement benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries in accordance with retirement statutes. The Systems are established and governed by the respective sections of Chapter 49 of the Utah Code Annotated 1953 as amended. The Utah State Retirement Office Act in Chapter 49 provides for the administration of the Utah Retirement Systems and Plans under the direction of the Utah State Retirement Board (Board) whose members are appointed by the Governor. The Systems issue a publicly available financial report that includes financial statements and

July 1 June 30 Due in

2012 Additions Reductions 2013 One Year


Bonds Payable:

2006 Sales Tax Revenue Refunding Bonds 9,665,000$ ‐$ 50,000$ 9,615,000$ 50,000$

2007 Special Assessment Refunding Bonds 3,705,000 ‐ 561,000 3,144,000 582,000

2008 RDA Tax Increment Bonds 7,872,000 ‐ 859,000 7,013,000 897,000

2008 Sales Tax Revenue Bonds 6,905,000 ‐ 435,000 6,470,000 455,000

2011 MBA Lease Revenue Refunding Bonds 6,880,000 ‐ 155,000 6,725,000 525,000

Unamortized Bond Premium 252,647 ‐ 21,432 231,215

Total Bonds Payable 35,279,647 ‐ 2,081,432 33,198,215

Notes Payable 100,968 ‐ 100,968 ‐

Capital Lease 279,530 ‐ 89,736 189,794 93,134

Compensated Absences 1,569,289 246,723 193,206 1,622,806 960,730

Claims and Judgments 378,667 898,744 127,226 1,150,185 230,037

Total Governmental Long‐Term Obligations 37,608,101 1,145,467 2,592,568 36,161,000 3,792,901


Bonds Payable:

2003 Water Revenue Bonds 2,010,000 ‐ 985,000 1,025,000 1,025,000

2007 Water Revenue and Refunding Bonds 20,700,000 ‐ 425,000 20,275,000 450,000

2005 MBA Lease Revenue Refunding Bonds 5,330,000 ‐ 220,000 5,110,000 230,000

2009 Water Revenue Bonds 8,500,000 ‐ 550,000 7,950,000 575,000

Unamortized Bond Premium 900,824 ‐ 97,683 803,141

Total Bonds Payable 37,440,824 ‐ 2,277,683 35,163,141

Compensated Absences 91,259 24,525 16,020 99,764 69,186

Total Business‐Type Long‐Term Obligations 37,532,083 24,525 2,293,703 35,262,905 2,349,186

Total Government‐Wide Long‐Term Obligations 75,140,184$ 1,169,992$ 4,886,271$ 71,423,905$ 6,142,087$



required supplementary information for the Public Employees Contributory Retirement System, Public Safety Noncontributory Retirement System, Public Safety Contributory Retirement System, and Fire Fighters Retirement System which are for employers with Social Security coverage. A copy of the report may be obtained by writing to the Utah Retirement Systems, 540 East 200 South, Salt Lake City, Utah, 84102 or by calling 1‐800‐365‐8772. Funding Policy. In the Public Employees Contributory Retirement System Tier I, members are required to contribute 6.0 percent of their annual covered salary (all or part may be paid by the employer for the employee). The City has chosen to contribute 5.0 percent of the member’s required contribution. In addition, the City is required to contribute 12.03 percent of the member’s annual covered salary. Tier I employees are those hired prior to July 1, 2011, or have previously worked at an employer in the System. The City also contributes to the Public Employees Contributory Retirement System Tier II, which covers employees hired on or after July 1, 2011, and have previously not worked at a covered employer. The City is required to contribute 14.51 percent of the member’s annual covered salary. In the Public Safety Noncontributory Retirement System (Tier I) the City is required to contribute 30.45 percent of the member’s annual covered salary. The City is required to contribute 19.25 percent in the Public Safety Contributory System (Tier II). In the Fire Fighters Retirement System (Division A) Tier I, members are required to contribute 15.05 percent of their annual covered salary (all or part may be paid by the employer for the employee). The City has chosen to contribute 14.05 percent of the members required contribution. In addition, the City is required to contribute 2.66 percent of the member’s annual covered salary. For the Fire Fighters Retirement System (Division B) Tier II the City is required to contribute 11.10 percent of the member’s covered annual salary. The contribution rates are actuarial determined rates. The contribution requirements of the Systems are authorized by statute and specified by the board. Trend Information. The following contributions have been made in the past three years and were equal to the required contributions for each fiscal year ending on June 30th:

2011 2012 2013

Local Government Contributory Division Tier I and II 1,244,931$ 1,264,991$ 1,451,063$

Public Safety Contributory Division A ‐ ‐ 9,745

Public Safety Noncontributory Division A Tier I 610,729 638,905 717,031

Firefighters Division A Tier I 364,932 345,992 396,048

Firefighters Division B ‐ ‐ 9,814



NOTE 12 ‐ COMMITMENTS AND CONTINGENCIES The City is a defendant in certain legal actions and pending actions, or in process for miscellaneous claims. The ultimate liability that might result from the final resolution of the above matters is not presently determinable. City management is of the opinion that the final outcome of the cases will not have an adverse material effect on the City’s financial statements. In the normal course of operations, the City receives grant funds from various federal agencies. The grant operations are subject to audit by agents of the granting authority, the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any liability for reimbursement that may arise as the result of audits of grant funds is not believed to be material.

NOTE 13 ‐ RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City participates in the Utah Risk Management Mutual Association (a public entity risk pool). All claims are submitted to the Utah Risk Management Mutual Association which acts as a commercial insurer. The Association is obligated to pay all claims covered by its plan. All claims are subject to a $7,500 deductible. The deductible is accrued as a current liability when the claim is incurred. The Utah Risk Management Mutual Association covers claims up to $6,000,000. The City has not incurred a claim in excess of its coverage for any of the past three fiscal years.

NOTE 14 ‐ REDEVELOPMENT AGENCY The Redevelopment Agency of South Jordan City is established to further public purposes in the redevelopment of certain City areas. For the year ended June 30, 2013, the following activity occurred in the City’s Redevelopment Agency: Tax increment collection from other taxing agencies for various project areas $12,301,882 Tax increment distributions 6,997,878 Outstanding loans to finance RDA projects 7,013,000 Amounts expended for installation of public utilities and other public improvements 151,417 Amounts expended for administrative costs 799,058



NOTE 15 ‐ EQUITY IN JOINT VENTURE Trans ‐ Jordan Cities The City of South Jordan joined a joint venture with several other municipalities to create the Trans‐Jordan Cities Landfill (Trans‐Jordan). Trans‐Jordan was created for the purpose of operating and maintaining a landfill for the benefit of member municipalities. The City uses the equity method to account for its investment.

A. Ownership In accordance with the Utah Inter‐local Cooperation Act (which created Trans‐Jordan),

all assets revert to the participating cities upon dissolution. Participants’ shares of these assets are based on each participating City’s payment of usage fees and charges in proportion to fees paid by all participating cities for the preceding ten fiscal years. Members’ participating interests are adjusted according to the above formula annually. As of June 30, 2013, these percentages are as follows:

B. Management

Trans‐Jordan’s Board of Directors governs the operations of Trans‐Jordan through management employed by the Board. Since Trans‐Jordan is subject to the same laws as the creating entities, it must follow State law for cities in the areas of fiscal management, budgeting, and financing.

Fees & Charges for

Participating Cities Ten Preceding Years Percent

Draper City 1,932,806$ 9.88%

Midvale City 1,010,864 5.18%

Murray City 1,660,082 8.49%

Riverton City 1,983,827 10.14%

Sandy City 5,912,842 30.24%

South Jordan City 2,550,751 13.04%

West Jordan City 4,503,999 23.03%

19,555,171$ 100.00%



C. Financial Summary

D. Debt The joint venture has the following long‐term debt:

Total South Jordan Amount City’s Share

Closure and Post‐closure Liability $4,425,375 $577,069

E. Address Audited financial statements for Trans‐Jordan Cities are available at the Trans‐Jordan

office. Trans‐Jordan Cities 10873 South 7200 West South Jordan, UT 84095

Trans‐Jordan South Jordan

Cities City's Share

Total Assets 24,986,843$ 3,258,284$

Total Liabilities 4,924,824$ 642,197$

Total Net Position 20,062,019$ 2,616,087$

Total Operating Revenues 5,978,939$ 779,654$

Total Operating Expenses 6,074,844 792,160

Net Operating Income (95,905) (12,506)

Total Non‐Operating Income (Expense) 624,323 81,412

Change in Net Position 528,418$ 68,906$

R

eq

uire

d Su

pp

lem

en

tary Info

Original Final Actual Variances with

Budget Budget Amounts Final Budget

REVENUES

Taxes

Property Tax ‐ Current 6,920,000$ 6,920,000$ 7,664,272$ 744,272$

Property Tax ‐ Delinquent 175,000 175,000 227,263 52,263

Motor Vehicle Tax 585,000 585,000 635,496 50,496

Sales and Use Tax 8,592,249 8,592,249 9,815,735 1,223,486

Penalties and Interest 10,000 10,000 14,546 4,546

Telecommunications Tax 875,000 875,000 869,378 (5,622)

Energy Sales and Use Tax 2,750,000 2,750,000 3,181,151 431,151

Total Taxes 19,907,249 19,907,249 22,407,841 2,500,592

Licenses and Permits

Building Permits 1,794,000 1,857,850 2,689,190 831,340

Business Licenses 150,000 150,000 182,229 32,229

Solid Waste License Fee 45,000 45,000 44,712 (288)

Innkeeper Fee 30,000 30,000 38,682 8,682

Miscellaneous 107,500 107,500 107,794 294

Total Licenses and Permits 2,126,500 2,190,350 3,062,607 872,257

Intergovernmental Revenues

Federal Grants 60,000 117,026 160,974 43,948

State Grants ‐ 33,660 40,873 7,213

County Grants ‐ 21,089 18,377 (2,712)

Class "C" Road Allotment 1,650,000 1,650,000 1,775,941 125,941

Liquor Fund Allotment 42,000 42,000 40,138 (1,862)

Total Intergovernmental Revenues 1,752,000 1,863,775 2,036,303 172,528


Ambulance Fees 668,722 750,054 1,056,882 306,828

Engineering Fees 100,000 100,000 223,769 123,769

Plan Check Fees 475,000 475,000 596,828 121,828

Zoning and Subdivision Fees 72,500 72,500 160,526 88,026

General Public Sanitation 200,000 200,000 226,536 26,536

Other Services 2,408,399 2,508,635 2,809,799 301,164

Total Charges for Services 3,924,621 4,106,189 5,074,340 968,151

Fines and Forfeitures 900,000 900,000 769,367 (130,633)

Miscellaneous Revenue

Investment Earnings 100,000 100,000 112,020 12,020

Sundry Revenue 115,000 203,465 210,022 6,557

Total Miscellaneous Revenue 215,000 303,465 322,042 18,577

Total Revenue 28,825,370 29,271,028 33,672,500 4,401,472

The notes to the required supplementary information are an integral part of this schedule.

CITY OF SOUTH JORDANGeneral FundSchedule of Revenues, Expenditures, and Changes in Fund Balance ‐

Budget and Actual


(Continued)




EXPENDITURES

General Government

General Administration 3,019,425$ 2,665,855$ 2,292,895$ 372,960$

Information and Records 1,709,460 1,746,639 1,496,434 250,205

Finance 1,401,210 1,304,631 1,100,735 203,896

Community Services 1,001,862 1,054,095 995,035 59,060

Legal 823,119 832,119 718,403 113,716

Government Serivces 844,393 959,193 879,834 79,359

Emergency and Risk Management 696,376 794,876 681,277 113,599

Total General Government 9,495,845 9,357,408 8,164,613 1,192,795

Community Development

Administration 130,092 143,292 125,563 17,729

Planning 445,510 462,010 443,461 18,549

Building 930,462 1,049,775 1,042,363 7,412

Engineering 1,630,503 1,706,811 1,621,854 84,957

Total Community Development 3,136,567 3,361,888 3,233,241 128,647

Public Works

Administration 580,069 595,069 546,537 48,532

Fleet 595,459 610,459 596,132 14,327

Streets and Roads 2,337,530 2,357,949 2,204,572 153,377

Total Public Works 3,513,058 3,563,477 3,347,241 216,236

Public Safety

Police 5,748,863 5,862,202 5,628,842 233,360

Fire 4,406,883 4,623,991 4,509,687 114,304

Total Public Safety 10,155,746 10,486,193 10,138,529 347,664

Parks, Recreation, and Culture

Parks 1,600,111 1,609,438 1,534,299 75,139

Recreation and Culture 182,568 273,782 216,200 57,582

Total Parks and Recreation 1,782,679 1,883,220 1,750,499 132,721

Total Expenditures 28,083,895 28,652,186 26,634,123 2,018,063


Over Expenditures 741,475 618,842 7,038,377 6,419,535


Transfers In 16,818 139,451 134,568 (4,883)

Transfers Out (758,293) (768,293) (6,290,853) (5,522,560)

Sale of Capital Assets ‐ ‐ 16,637 16,637

Total Other Financing Sources (Uses) (741,475) (628,842) (6,139,648) (5,510,806)

Net Change in Fund Balance ‐ (10,000) 898,729 908,729

Fund Balance ‐ July 1 5,228,970 5,228,970 5,228,970 ‐

Fund Balance ‐ June 30 5,228,970$ 5,218,970$ 6,127,699$ 908,729$


CITY OF SOUTH JORDANGeneral FundSchedule of Revenues, Expenditures, and Changes in Fund Balance ‐

Budget and Actual (Continued)





REVENUES

Taxes 13,538,665$ 13,538,665$ 12,301,882$ (1,236,783)$

Interest ‐ ‐ 61,589 61,589

Total Revenues 13,538,665 13,538,665 12,363,471 (1,175,194)

EXPENDITURES

General Government 602,513 952,513 799,058 153,455

Capital Outlay and Projects 1,052,042 1,144,117 151,417 992,700

Tax Increment Distributions 7,029,246 7,157,299 6,997,878 159,421

Debt Service

Principal Retirement 859,000 859,000 859,000 ‐

Interest and Fees 348,474 348,474 347,974 500



Over Expenditures 3,647,390 3,077,262 3,208,144 130,882


Transfers Out (1,207,982) (1,207,982) (1,207,982) ‐

Total Other Financing Sources (Uses) (1,207,982) (1,207,982) (1,207,982) ‐

Net Change in Fund Balance 2,439,408 1,869,280 2,000,162 130,882




CITY OF SOUTH JORDANRedevelopment Agency Fund

Schedule of Revenues, Expenditures, and Changes in Fund Balance ‐

Budget and Actual




CITY OF SOUTH JORDAN NOTES TO REQUIRED SUPPLEMENTARY INFORMATION For the Year Ended June 30, 2013

1. BUDGETARY INFORMATION

Budgets for the general fund and the redevelopment agency are adopted and presented on a basis consistent with generally accepted accounting principles.

Sup

ple

me

ntary In

form

ao

n


NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS Special Revenue funds are used to account for specific revenues that are restricted to expenditure

for particular purposes.

1) Storm Drain – This fund is used to track revenue from a monthly fee paid by City

residents for the maintenance of the City’s storm drain system.

2) CDBG Fund – This fund is used to account for the revenues received by the City as a

grantee participant in the Community Development Grant Program.

3) Fitness Center Fund – This fund is used to account for fees charged to users and

expenditures dealing with maintenance of the facility.

DEBT SERVICE FUND The Municipal Building Authority is presented as a debt service fund. The authority uses the

proceeds of its tax exempt bonds to finance the construction or acquisition of general assets for the

City.

1) Municipal Building Authority (MBA) – This fund is used to account for the

construction of capital facilities of the City.

PERMANENT FUND Permanent funds are used to report resources that are legally restricted to the extent that only

earnings, not principal, may be used for purposes that support the reporting government’s

programs.

1) Cemetery Perpetual Care Fund – This fund is used to account for the principal trust

amounts received and related interest income. The interest portion of the trust can

be used to maintain the community cemetery.

Debt Service Permanent

Storm Fitness

Drain CDBG Center MBA Cemetery Total

ASSETS

Cash and Cash Equivalents 2,419,720$ ‐$ 1,193,879$ 296,909$ 632,744$ 4,543,252$

Restricted Cash and Cash Equivalents ‐ ‐ ‐ 64,407 ‐ 64,407

Receivables

Accounts 265,447 15,080 10,879 ‐ ‐ 291,406

Due From Other Funds ‐ ‐ 10,303 ‐ ‐ 10,303

Total Assets 2,685,167$ 15,080$ 1,215,061$ 361,316$ 632,744$ 4,909,368$

LIABILITIES

Accounts Payable and Accrued Liabilities 18,038$ 4,777$ 103,935$ ‐$ ‐$ 126,750$

Due to Other Funds ‐ 10,303 ‐ ‐ ‐ 10,303

Total Liabilities 18,038 15,080 103,935 ‐ ‐ 137,053

FUND BALANCES

Restricted ‐ ‐ ‐ 64,407 ‐ 64,407

Committed Fund Balance ‐ ‐ ‐ ‐ 436,800 436,800

Assigned Fund Balance 2,667,129 ‐ 1,111,126 296,909 195,944 4,271,108

Total Fund Balances 2,667,129 ‐ 1,111,126 361,316 632,744 4,772,315

Total Liabilities and Fund Balances 2,685,167$ 15,080$ 1,215,061$ 361,316$ 632,744$ 4,909,368$

Special Revenue

CITY OF SOUTH JORDANCombining Balance SheetNonmajor Governmental Funds

June 30, 2013


Debt Service Permanent

Storm Fitness

Drain CDBG Center MBA Cemetery Total

REVENUES

Intergovernmental ‐$ 120,000$ ‐$ ‐$ ‐$ 120,000$

Charges for Services 2,135,338 ‐ 1,633,577 ‐ 40,600 3,809,515

Interest 13,022 ‐ ‐ ‐ 3,117 16,139

Miscellaneous 1,811 ‐ 58,005 ‐ ‐ 59,816

Total Revenues 2,150,171 120,000 1,691,582 ‐ 43,717 4,005,470

EXPENDITURES

Current

Public Works 940,061 ‐ ‐ ‐ ‐ 940,061

Community Development ‐ 38,859 ‐ ‐ ‐ 38,859

Parks, Recreation, and Culture ‐ ‐ 1,454,556 ‐ ‐ 1,454,556

Debt Service

Principal ‐ ‐ ‐ 155,000 ‐ 155,000

Interest and Fees ‐ ‐ ‐ 290,826 ‐ 290,826

Capital Outlay and Projects 48,724 81,141 359,684 ‐ ‐ 489,549

Total Expenditures 988,785 120,000 1,814,240 445,826 ‐ 3,368,851

Excess (Deficiency) of

Revenues over Expenditures 1,161,386 ‐ (122,658) (445,826) 43,717 636,619


Sale of Capital Assets ‐ ‐ 7,688 ‐ ‐ 7,688

Transfers In ‐ ‐ 357,066 444,426 ‐ 801,492

Transfers Out (99,799) ‐ (68,323) (342,160) (3,117) (513,399)

Total Other Financing Sources (Uses) (99,799) ‐ 296,431 102,266 (3,117) 295,781

Net Change in Fund Balances 1,061,587 ‐ 173,773 (343,560) 40,600 932,400

Fund Balances ‐ Beginning 1,605,542 ‐ 937,353 704,876 592,144 3,839,915

Fund Balances ‐ Ending 2,667,129$ ‐$ 1,111,126$ 361,316$ 632,744$ 4,772,315$

CITY OF SOUTH JORDANCombining Statement of Revenues, Expenditures, and Changes in Fund Balances

Nonmajor Governmental Funds


Special Revenue




REVENUES

Special Assessments 726,990$ 726,990$ 728,319$ 1,329$

Interest 8,465 8,465 9,736 1,271

Miscellaneous 148,920 148,920 157,027 8,107

Total Revenue 884,375 884,375 895,082 10,707

EXPENDITURES

General Government 21,350 21,350 21,350 ‐

Debt Service

Principal 1,142,660 1,142,660 1,135,736 6,924

Interest and Fees 876,911 881,927 885,601 (3,674)

Total Expenditures 2,040,921 2,045,937 2,042,687 3,250


Over Expenditures (1,156,546) (1,161,562) (1,147,605) 13,957


Transfers In 1,156,546 1,931,796 1,931,796 ‐

Total Other Financing Sources (Uses) 1,156,546 1,931,796 1,931,796 ‐

Net Change in Fund Balance ‐ 770,234 784,191 13,957



CITY OF SOUTH JORDANDebt Service Fund


Budget and Actual





REVENUES

Intergovernmental ‐$ 403,628$ 404,288$ 660$

Interest ‐ ‐ 33,740 33,740

Impact Fees ‐ ‐ 3,845,738 3,845,738

Miscellaneous ‐ 402,572 419,103 16,531

Total Revenue ‐ 806,200 4,702,869 3,896,669

EXPENDITURES

Capital Outlay

Road and Bridge 1,384,537 2,410,826 1,022,327 1,388,499

Parks 1,535,000 2,426,852 829,225 1,597,627

Storm Drain 227,100 998,827 598,104 400,723

Facilities 206,750 247,285 100,877 146,408

Other Projects 800,654 1,336,775 884,288 452,487



Over Expenditures (4,154,041) (6,614,365) 1,268,048 7,882,413



Transfers In 623,500 730,358 6,252,918 5,522,560

Transfers Out (321,637) (1,207,835) (1,207,835) ‐

Total Other Financing Sources (Uses) 301,863 (477,477) 5,307,277 5,784,754

Net Change in Fund Balance (3,852,178) (7,091,842) 6,575,325 13,667,167


Fund Balance ‐ June 30 9,333,858$ 6,094,194$ 19,761,361$ 13,667,167$

CITY OF SOUTH JORDANCapital Projects Fund


Budget and Actual





REVENUES

Charges for Services 2,043,148$ 2,043,148$ 2,135,338$ 92,190$

Interest ‐ ‐ 13,022 13,022

Miscellaneous ‐ ‐ 1,811 1,811

Total Revenue 2,043,148 2,043,148 2,150,171 107,023

EXPENDITURES

Public Works 990,553 1,002,553 940,061 62,492

Capital Outlay 848,295 876,295 48,724 827,571

Total Expenditures 1,838,848 1,878,848 988,785 890,063


Over Expenditures 204,300 164,300 1,161,386 997,086


Transfers Out (2,941) (99,799) (99,799) ‐

Total Other Financing Sources (Uses) (2,941) (99,799) (99,799) ‐

Net Change in Fund Balance 201,359 64,501 1,061,587 997,086



CITY OF SOUTH JORDANStorm Drain Fund


Budget and Actual





REVENUES

Intergovernmental 146,606$ 146,606$ 120,000$ (26,606)$

Total Revenue 146,606 146,606 120,000 (26,606)

EXPENDITURES

General Government 39,321 39,321 38,859 462

Capital Outlay 107,285 107,285 81,141 26,144

Total Expenditures 146,606 146,606 120,000 26,606


Over Expenditures ‐ ‐ ‐ ‐

Net Change in Fund Balance ‐ ‐ ‐ ‐

Fund Balance ‐ July 1 ‐ ‐ ‐ ‐

Fund Balance ‐ June 30 ‐$ ‐$ ‐$ ‐$

CITY OF SOUTH JORDANCommunity Development Block Grant Fund


Budget and Actual





REVENUES

Charges for Services 1,459,000$ 1,554,000$ 1,633,577$ 79,577$

Miscellaneous 22,000 58,525 58,005 (520)

Total Revenue 1,481,000 1,612,525 1,691,582 79,057

EXPENDITURES

Parks, Recreation, and Culture 1,427,444 1,471,044 1,454,556 16,488

Capital Outlay 318,645 318,645 359,684 (41,039)

Total Expenditures 1,746,089 1,789,689 1,814,240 (24,551)


Over Expenditures (265,089) (177,164) (122,658) 54,506



Transfers In 357,066 357,066 357,066 ‐

Transfers Out (949) (68,323) (68,323) ‐

Total Other Financing Sources (Uses) 356,117 288,743 296,431 7,688

Net Change in Fund Balance 91,028 111,579 173,773 62,194

Fund Balance ‐ July 1 937,353 937,353 937,353 ‐


CITY OF SOUTH JORDANFitness Center Fund


Budget and Actual





REVENUES

Interest 1,750$ 1,750$ ‐$ (1,750)$

Total Revenue 1,750 1,750 ‐ (1,750)

EXPENDITURES

Debt Service

Principal 155,000 155,000 155,000 ‐

Interest and Fees 291,176 291,176 290,826 350

Total Expenditures 446,176 446,176 445,826 350


Over Expenditures (444,426) (444,426) (445,826) (1,400)


Transfers In 444,426 444,426 444,426 ‐

Transfers Out (293,645) (342,160) (342,160) ‐

Total Other Financing Sources (Uses) 150,781 102,266 102,266 ‐

Net Change in Fund Balance (293,645) (342,160) (343,560) (1,400)


Fund Balance ‐ June 30 411,231$ 362,716$ 361,316$ (1,400)$

CITY OF SOUTH JORDANMunicipal Building Authority Fund


Budget and Actual





REVENUES

Charges for Services 8,000$ 35,000$ 40,600$ 5,600$

Interest ‐ 8,000 3,117 (4,883)

Total Revenue 8,000 43,000 43,717 717

EXPENDITURES

Capital Outlay ‐ ‐ ‐ ‐

Total Expenditures ‐ ‐ ‐ ‐


Over Expenditures 8,000 43,000 43,717 717


Transfers Out (8,000) (8,000) (3,117) 4,883

Total Other Financing Sources (Uses) (8,000) (8,000) (3,117) 4,883

Net Change in Fund Balance ‐ 35,000 40,600 5,600


Fund Balance ‐ June 30 592,144$ 627,144$ 632,744$ 5,600$

CITY OF SOUTH JORDANCemetery Perpetual Care Fund


Budget and Actual



Sta

scal Se

co

n


STATISTICAL SECTION

This part of the City of South Jordan’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. FINANCIAL TRENDS – These schedules contain trend information to help the reader understand how the city’s financial performance and well‐being have changed over time. Net Position by Component ........................................................................................................... 93 Changes in Net Position ................................................................................................................. 94 Fund Balances, Governmental Funds ............................................................................................. 96 Changes in Fund Balances, Governmental Funds .......................................................................... 97 REVENUE CAPACITY – These schedules contain information to help the reader assess the city’s most significant local revenue sources: Property tax, sales tax, and water revenue. Assessed Value and Estimated Actual Value of Taxable Property ................................................. 99 Direct and Overlapping Property Tax Rates ................................................................................. 100 Principal Property Tax Payers....................................................................................................... 101 Property Tax Levied and Collections ............................................................................................ 102 Principal Sales Tax Payers ............................................................................................................ 103 Direct and Overlapping Sales Tax Rates ....................................................................................... 104 Charges for Water Fees ................................................................................................................ 105 DEBT CAPACITY – These schedules present information to help the reader assess the affordability of the city’s current levels of outstanding debt and the government’s ability to issue additional debt in the future. Ratios of Outstanding Debt by Type ............................................................................................ 106 Direct and Overlapping Governmental Activities Debt ................................................................ 107 Legal Debt Margin Information .................................................................................................... 108 Pledged Revenue Coverage .......................................................................................................... 109 DEMOGRAPHIC AND ECONOMIC DEVELOPMENT INFORMATION – These schedules offer demographic and economic indicators to help the reader understand the environment within which the city’s financial activities take place. Demographic and Economic Statistics ......................................................................................... 111 Principal Employers ...................................................................................................................... 112 Full‐time Equivalent City Government Employees by Function/Program ................................... 113 OPERATING INFORMATION – These schedules contain service and infrastructure data to help the reader understand how the information in the city’s financial report relates to the services the city provides and the activities it performs. Operating Indicators by Function/Program ................................................................................. 114 Capital Asset Statistics by Function/Program .............................................................................. 115 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year.

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Governmen

tal A

ctivities

Invested

in Capital Assets, Net of Related

Deb

t65,340,150

$

79,256,640

$

106,761,733

$

128,667,115

$

164,633,436

$

173,288,801

$

182,191,448

$

184,928,098

$

190,401,077

$

190,745,605

$

Restricted

7,371,459

5,526,916

5,171,176

5,546,107

6,817,249

5,287,778

5,750,547

5,778,082

6,487,565

9,320,159

Unrestricted

19,163,118

18,990,548

23,086,915

32,173,707

18,940,477

15,981,298

19,648,675

23,561,253

28,107,792

36,671,797

Total G

overnmen

t Activities Net Position

91,874,727

103,774,104

135,019,824

166,386,929

190,391,162

194,557,877

207,590,670

214,267,433

224,996,434

236,737,561

Business‐type Activities

Invested


Deb

t35,170,815

40,959,558

50,171,439

61,890,171

66,417,595

65,826,404

80,535,829

81,720,057

82,158,412

83,077,861

Restricted

1,843,649

4,189,093

5,019,969

4,508,398

4,188,003

5,357,126

5,357,073

5,357,073

4,686,192

7,805,966

Unrestricted

3,928,047

2,680,927

6,284,350

8,054,634

10,432,319

17,952,818

12,934,808

15,034,338

17,883,852

19,607,470

Total Business‐type Activities Net Position

40,942,511

47,829,578

61,475,758

74,453,203

81,037,917

89,136,348

98,827,710

102,111,468

104,728,456

110,491,297

Primary Governmen

t

Invested


Deb

t100,510,965

120,216,198

156,933,172

190,557,286

231,051,031

239,115,205

262,727,277

266,648,155

272,559,489

273,823,466

Restricted

9,215,108

9,716,009

10,191,145

10,054,505

11,005,252

10,644,904

11,107,620

11,135,155

11,173,757

17,126,125

Unrestricted

23,091,165

21,671,475

30,843,775

41,685,156

29,372,796

33,934,116

32,583,483

38,595,591

45,991,644

56,279,267


t Net Position

132,817,238

$

151,603,682

$

197,968,092

$

242,296,947

$

271,429,079

$

283,694,225

$

306,418,380

$

316,378,901

$

329,724,890

$

347,228,858

$

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ne

t P

osi

tio

n b

y C

om

po

ne

nt

Last Ten

Fiscal Years

(accrual basis of accounting)

93City of South Jordan Comprehensive Annual Financial Report

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Exp

en

ses

Governmen

tal A

ctivities:

Gen

eral Governmen

t6,870,068

$

5,797,064

$

4,063,181

$

7,689,410

$

12,382,752

$

25,767,542

$

13,717,369

$

12,109,691

$

15,502,901

$

17,389,131

$


t6,026,263

6,829,037

8,829,267

3,071,596

4,307,929

2,666,063

2,790,912

2,995,757

3,137,078

3,291,558

Public W

orks

4,943,240

6,460,953

7,736,325

14,432,464

8,152,171

8,765,876

9,377,398

10,556,329

10,680,313

10,800,864

Public Safety

‐

‐

‐

‐

9,085,813

9,977,339

10,344,086

10,247,065

10,593,261

10,592,624

Parks, R


‐

‐

‐

‐

2,797,002

2,482,574

2,758,666

3,004,123

3,194,554

4,432,215

Red

evelopmen

t1,379,091

4,447,692

‐

‐

‐

‐

‐

‐

‐

‐

Finance and Administrative Services

‐

‐

5,761,808

5,794,895

‐

‐

‐

‐

‐

‐

Interest on Long‐term

Deb

t2,007,526

1,956,191

1,761,293

1,615,736

1,364,267

1,877,795

1,962,277

1,792,390

1,599,655

1,446,215

Total G

overnmen

tal G

ctivities Expen

se21,226,188

25,490,937

28,151,874

32,604,101

38,089,934

51,537,189

40,950,708

40,705,355

44,707,762

47,952,607


Water

6,556,322

7,509,008

8,224,417

9,661,825

11,590,718

12,169,090

13,234,622

13,218,308

14,600,787

14,665,809

Sanitation

1,306,726

1,226,513

1,462,979

1,676,313

1,929,607

1,941,646

2,223,915

2,255,978

2,753,324

2,737,800

Mulligans

‐

1,140,005

1,559,361

1,273,268

1,262,095

1,216,443

1,151,246

1,140,856

1,104,589

1,076,915

Total Business‐type Activities Expen

se7,863,048

9,875,526

11,246,757

12,611,406

14,782,420

15,327,179

16,609,783

16,615,142

18,458,700

18,480,524


t Expen

ses

29,089,236

35,366,463

39,398,631

45,215,507

52,872,354

66,864,368

57,560,491

57,320,497

63,166,462

66,433,131

Pro

gram

Re

ven

ue

s

Governmen

tal A

ctivities:

Charges for Services:

Gen

eral Governmen

t4,595,121

6,459,964

1,929,805

5,413,975

4,203,401

5,321,133

10,797,411

8,413,802

10,023,023

4,191,264


t‐

‐

‐

‐

4,940,046

2,626,351

2,287,428

2,203,018

2,207,553

3,770,162

Public W

orks

2,545,979

3,337,655

11,066,549

9,302,633

3,808,582

3,434,446

1,570,106

1,504,460

2,340,293

6,333,077

Public Safety

1,831,151

2,096,760

2,356,987

328,651

906,824

558,538

418,644

‐

‐

1,350,973

Parks, R

ecreation, and Cultur e

‐

‐

‐

‐

2,287,865

247,646

52,655

922,630

2,142,558

1,929,378

Finance and Administrative Services

2,978,838

2,876,350

2,528,736

1,089,849

‐

‐

‐

‐

‐

‐

Operating Grants and Contributions

1,727,810

2,230,985

1,841,950

1,950,195

1,878,241

2,239,958

1,854,699

2,245,987

2,104,024

2,560,591

Capital Grants and Contributions

6,483,571

8,865,370

23,874,290

27,178,129

20,049,268

16,470,876

11,616,590

2,845,815

4,130,047

4,764,233

Total G

overnmen

tal A

ctivities Program

s Reven

ues

20,162,470

25,867,084

43,598,317

45,263,432

38,074,227

30,898,948

28,597,533

18,135,712

22,947,498

24,899,678

Business‐type Activities:

Charges for Services:

Water

9,160,374

10,001,697

12,318,095

12,549,690

14,461,880

14,061,525

13,606,735

15,198,823

15,457,540

17,058,838

Sanitation

1,306,726

1,947,040

2,041,235

2,409,651

2,446,905

2,270,385

2,590,014

2,631,313

2,782,767

2,899,907

Mulligans

‐

1,103,493

1,196,809

1,312,393

1,246,377

1,232,693

1,253,843

1,150,831

1,343,934

1,229,420

Capital Grants and Contributions

2,392,023

4,037,365

5,767,243

8,541,823

4,272,734

5,937,377

8,824,471

764,448

1,437,347

2,955,905

Total Business‐type Activities Program

Reven

ues

12,859,123

17,089,595

21,323,382

24,813,557

22,427,896

23,501,980

26,275,063

19,745,415

21,021,588

24,144,070


tal Program

Reven

ue s

33,021,593

42,956,679

64,921,699

70,076,989

60,502,123

54,400,928

54,872,596

37,881,127

43,969,086

49,043,748

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ch

ange

s in N

et

Po

siti

on

Last Ten Fiscal Years



2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Ne

t (E

xpe

nse

)/R

eve

nu

e

Governmen

tal A

ctivities

(1,063,718)

376,147

15,446,443

12,659,331

(15,707)

(20,638,241)

(12,353,175)

(22,569,643)

(21,760,264)

(23,052,929)


4,996,075

7,214,069

10,076,626

12,202,151

7,645,476

8,174,801

9,665,280

3,130,273

2,562,888

5,663,546


t Net Expen

se3,932,357

7,590,216

25,523,069

24,861,482

7,629,769

(12,463,440)

(2,687,895)

(19,439,370)

(19,197,376)

(17,389,383)

Ge

ne

ral R

eve

nu

es

and O

the

r C

han

ges

in N

et

Ass

ets

Governmen

tal A

ctivities:

Taxes

Property Taxes

5,339,574

6,063,532

7,428,694

8,900,328

11,456,293

13,403,866

14,238,268

17,254,088

19,339,283

21,559,693

Sales Taxes

3,255,045

3,658,972

4,926,279

6,481,322

7,174,379

7,363,412

7,470,026

8,301,690

9,047,468

9,815,735

Energy Sales and Use Tax

1,434,575

1,431,090

1,853,968

1,824,497

2,260,516

2,363,720

2,520,364

2,771,527

2,793,820

3,181,151

Other Taxes

187,952

565,185

753,042

877,001

843,014

918,708

937,852

872,976

921,270

14,546

Gain (Loss) on Dispostion of Capital Assets

759,303

(867,929)

3,784,498

11,125

229,846

173,197

47,843

‐

51,222

89,002

Investmen

t Earnings

50,875

250,460

419,040

1,174,925

995,130

505,683

175,085

199,610

380,297

233,224

Miscellaneo

us

69,617

65,208

203,310

450,196

‐

‐

‐

‐

‐

‐

Transfers

257,746

356,712

(3,569,554)

(1,011,620)

1,060,762

76,370

(3,470)

(153,485)

(44,100)

(99,295)

Total G

overnmen

tal A

ctivities

11,354,687

11,523,230

15,799,277

18,707,774

24,019,940

24,804,956

25,385,968

29,246,406

32,489,260

34,794,056

Business‐type Activities:

Gain (Loss) on Disposal of Capital Assets

‐

6,440

‐

(236,326)

‐

‐

22,612

‐

10,000

‐

Investmen

t Earnings

8,422

23,270

‐

‐

‐

‐

‐

‐

‐

‐

Transfers

(257,746)

(356,712)

3,569,554

1,011,620

(1,060,762)

(76,370)

3,470

153,485

44,100

99,295

Total Business‐type Activities

(249,324)

(327,002)

3,569,554

775,294

(1,060,762)

(76,370)

26,082

153,485

54,100

99,295


t11,105,363

11,196,228

19,368,831

19,483,068

22,959,178

24,728,586

25,412,050

29,399,891

32,543,360

34,893,351

Ch

ange

in N

et

Po

siti

on

Governmen

tal A

ctivities

10,290,969

11,899,377

31,245,720

31,367,105

24,004,233

4,166,715

13,032,793

6,676,763

10,728,996

11,741,127


4,746,751

6,887,067

13,646,180

12,977,445

6,584,714

8,098,431

9,691,362

3,283,758

2,616,988

5,762,841


t15,037,720

$

18,786,444

$

44,891,900

$

44,344,550

$

30,588,947

$

12,265,146

$

22,724,155

$

9,960,521

$

13,345,984

$

17,503,968

$

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ch

ange

s in N

et

Po

siti

on (

con

tin

ue

d)

Last Ten Fiscal Years



2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Gen

eral Fund

Nonspen

dable

272,704

$

144,456

$

23,728

$

19,159

$

21,901

$

10,612

$

10,993

$

21,408

$

26,239

$

39,877

$

Restricted

‐

59,706

‐

‐

‐

‐

‐

‐

14,164

11,862

Committed

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

Assigned

‐

‐

‐

‐

‐

‐

‐

‐

‐

87,393

Unassigned

3,157,492

3,192,878

3,866,240

4,566,731

5,185,683

5,213,666

5,221,309

5,279,652

5,188,567

5,988,567

Total G

eneral Fund

3,430,196

$

3,397,040

$

3,889,968

$

4,585,890

$

5,207,584

$

5,224,278

$

5,232,302

$

5,301,060

$

5,228,970

$

6,127,699

$

All Other Governmen

tal Funds

Nonspen

dable

119,703

$

113,991

$

159,265

$

250,910

$

96,857

$

116,328

$

96,857

$

96,857

$

134,313

$

28,092

$

Restricted

6,973,633

5,098,313

4,725,089

5,074,875

6,328,860

4,765,105

5,222,316

5,224,294

5,881,257

8,675,553

Committed

257,816

270,708

289,991

313,629

313,629

336,903

358,253

383,801

395,500

436,800

Assigned

9,096,012

9,693,482

12,501,865

14,683,263

9,177,131

11,687,422

10,465,979

15,563,096

21,817,815

29,380,518

Unassigned

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

Total A

ll Other Governmen

tal Funds

16,447,164

$

15,176,494

$

17,676,210

$

20,322,677

$

15,916,477

$

16,905,758

$

16,143,405

$

21,268,048

$

28,228,885

$

38,520,963

$

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Fun

d B

alan

ces, G

ove

rnm

en

tal F

un

ds

Last Ten

Fiscal Years

(modified accrual basis of accounting)


2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Re

ven

ue

s

Taxes

10,240,605

$

11,623,773

$

14,960,684

$

18,187,553

$

21,604,249

$

23,738,906

$

25,158,343

$

29,220,387

$

32,264,757

$

34,709,723

$

Licenses and Permits

1,790,661

2,948,658

3,763,459

3,716,134

2,974,174

1,829,604

2,287,428

2,203,018

2,207,553

3,062,607

Intergovernmen

tal

1,717,710

2,230,984

2,182,529

2,273,037

2,040,569

2,239,959

1,966,229

2,245,987

2,104,024

2,560,591


3,216,295

4,767,544

5,950,844

7,073,069

7,332,800

6,533,932

6,999,950

7,327,252

9,013,661

8,883,855

Fines and Forfeitures

987,405

1,189,595

1,260,350

1,089,849

1,009,544

1,001,232

1,043,493

885,487

827,665

769,367

Special A

ssessm

ents

794,799

926,733

710,771

799,031

785,888

711,536

716,910

721,063

721,697

728,319

Interest

285,586

469,847

756,130

1,174,925

995,130

505,683

175,085

199,615

380,297

233,224

Impact fees

5,094,036

5,333,222

5,831,054

4,256,057

2,463,789

1,572,054

2,253,364

1,504,460

2,340,293

3,845,738

Miscellaneo

us

707,696

377,533

942,584

1,598,226

1,904,251

1,024,621

2,214,569

922,626

2,142,558

845,968

Total Reven

ues

24,834,793

29,867,889

36,358,405

40,167,881

41,110,394

39,157,527

42,815,371

45,229,895

52,002,505

55,639,392

Exp

en

dit

ure

s

Gen

eral Governmen

t5,266,202

3,946,900

2,477,432

5,683,085

9,694,127

10,868,597

9,956,496

9,876,422

10,334,377

9,123,845


t‐

‐

‐

‐

2,827,193

2,622,687

2,733,183

2,905,598

3,047,669

3,272,100

Public W

orks

2,093,356

2,767,976

3,992,094

8,966,517

3,200,085

3,452,789

4,267,434

4,755,483

4,410,272

4,826,681

Public Safety

5,780,900

6,619,809

8,377,726

2,832,767

8,663,160

9,248,471

9,184,918

9,498,423

9,916,399

10,202,639

Parks, R


‐

‐

‐

‐

2,264,434

1,880,757

2,046,671

2,392,833

2,144,382

3,312,352

Finance and Admin. Services

1,151,439

3,233,684

4,817,357

5,233,222

‐

‐

‐

‐

‐

‐

Tax Increm

ent Distributions

487,608

581,406

799,491

1,453,327

2,769,047

13,696,931

2,524,699

1,959,040

4,253,776

6,997,878

Capital Outlay

9,374,068

10,886,020

10,333,125

7,761,741

13,677,411

11,233,238

7,525,348

3,266,161

4,665,859

3,226,177

Deb

t Service

Principal

1,743,380

6,041,894

2,471,530

2,901,694

2,030,751

3,227,438

3,414,344

3,361,174

4,812,188

2,149,736

Interest

2,053,404

2,006,799

1,742,568

1,919,083

1,812,173

1,618,274

2,024,325

1,880,074

1,568,137

1,524,401

Other

‐

‐

‐

‐

‐

259,409

‐

‐

130,652

‐

Total Expen

ditures

27,950,357

36,084,488

35,011,323

36,751,436

46,938,381

58,108,591

43,677,418

39,895,208

45,283,711

44,635,809

Excess (Deficiency)

of Reven

ues over

Expen

ditures

(3,115,564)

(6,216,599)

1,347,082

3,416,445

(5,827,987)

(18,951,064)

(862,047)

5,334,687

6,718,794

11,003,583

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ch

ange

s in F

un

d B

alan

ces, G

ove

rnm

en

tal F

un

ds

Last Ten

Fiscal Years

(modified accrual basis of accounting)


2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Oth

er

Fin

anci

ng

Sou

rce

s (U

ses)

Issuance of Long Term

Deb

t1,880,652

$

1,246,924

$

1,333,934

$

10,219,500

$

6,380,000

$

19,357,000

$

‐$

‐$

6,880,000

$

‐$

Bond Premium

‐

‐

‐

‐

‐

216,708

‐

‐

94,714

‐

Sale of Capital Assets

1,742,087

3,309,139

3,881,177

236,300

719,874

306,961

111,188

12,200

78,122

286,519

Paymen

t to Refunded

Bonds Escrow Agent

‐

‐

‐

(9,699,784)

(6,100,000)

‐

‐

‐

(6,838,782)

‐

Transfers In

3,428,827

7,792,483

11,268,143

10,512,044

10,653,602

8,036,191

7,674,394

8,565,411

9,374,735

9,120,774

Transfers Out

(3,171,081)

(7,435,771)

(14,837,697)

(11,359,269)

(9,592,839)

(7,959,821)

(7,677,864)

(8,718,896)

(9,418,836)

(9,220,069)

Total O

ther Financing

Sources (Uses)

3,880,485

4,912,775

1,645,557

(91,209)

2,060,637

19,957,039

107,718

(141,285)

169,953

187,224

Net Change in

Fund Balances

764,921

$

(1,303,824)

$

2,992,639

$

3,325,236

$

(3,767,350)

$

1,005,975

$

(754,329)

$

5,193,402

$

6,888,747

$

11,190,807

$

Deb

t Service as a

Percentage of Noncapital

Expen

ditures

20%

32%

17%

17%

12%

10%

15%

14%

16%

9%

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ch

ange

s in F

un

d B

alan

ces, G

ove

rnm

en

tal F

un

ds

(co

nti

nu

ed

)Last Ten

Fiscal Years


Fiscal

Year

Residen

tial Property

Commerical

Property

Industrial

Property

Less: Tax‐Exempt

Property

Total Taxable

Assessed Value

Total D

irect

Tax Rate

Estimated

Actual

Taxable Value

Taxable Assessed Value

as a Percentage of

Actual Taxable Value

2004

1,385,723,151

$

230,953,859

$

2,155,569

$

79,140,189

$

1,539,692,390

$

1.87

2,387,119,984

$

64.50

2005

1,553,149,212

258,858,202

2,416,010

88,702,077

1,725,721,347

2.21

2,675,536,972

64.50

2006

1,750,626,962

291,771,160

2,723,197

99,980,251

1,945,141,069

1.87

3,015,722,587

64.50

2007

2,258,377,822

423,682,386

4,642,382

90,866,013

2,595,836,577

1.71

4,024,552,833

64.50

2008

3,181,686,071

596,899,390

6,540,360

128,015,395

3,657,110,427

1.70

5,669,938,647

64.50

2009

3,723,517,796

698,549,591

7,654,164

149,816,038

4,279,905,513

2.03

6,635,512,423

64.50

2010

3,337,142,726

626,063,796

6,859,921

134,270,206

3,835,796,237

2.07

5,946,970,910

64.50

2011

3,466,518,714

538,233,438

99,688,053

2,051,195

4,102,389,011

2.33

6,360,293,040

64.50

2012

3,392,943,910

526,809,753

97,572,233

2,007,659

4,015,318,237

2.38

6,130,256,850

65.50

2013

3,435,655,884

533,441,482

98,800,518

2,032,932

4,065,864,951

2.44

6,207,427,406

65.50

Source: U

tah State Tax Commission ‐ Property Tax Division

CIT

Y O

F SO

UTH

JO

RD

AN

Ass

ess

ed V

alu

e a

nd E

stim

ate

d A

ctu

al V

alu

e o

f Ta

xab

le P

rop

ert

yLast Ten

Fiscal Years


Fiscal

Year

Basic

Rates

Total

Direct

Rate

Jordan

School

District

Salt Lake

Library

Salt Lake

County

Mosquito

Abatem

ent

Cen

tral Utah

Water

Conservancy

District

Sandy

Suburban

South

Valley

Sewer

Jordan

Valley

Water

Conservancy

District

Crescen

t

Cem

etery

2004

1.87

1.87

8.86

0.73

2.82

0.03

0.35

1.10

0.52

0.39

0.07

2005

2.21

2.21

8.66

0.70

2.68

0.03

0.40

1.10

0.47

0.40

0.06

2006

1.87

1.87

7.35

0.62

2.37

0.03

0.36

1.06

0.41

0.35

‐

2007

1.71

1.71

6.62

0.52

1.99

0.02

0.30

0.88

0.33

0.40

0.04

2008

1.70

1.70

6.15

0.50

1.93

0.02

0.29

0.81

0.32

0.38

0.04

2009

2.03

2.03

7.38

0.56

2.28

0.03

0.40

0.90

0.38

0.40

0.04

2010

2.07

2.07

6.49

0.58

2.59

0.05

0.42

0.94

0.37

0.41

0.05

2011

2.33

2.33

7.32

0.60

2.70

0.05

0.44

0.97

0.40

0.42

0.05

2012

2.38

2.38

7.36

0.63

2.79

0.02

0.46

1.03

0.41

0.44

0.05

2013

2.44

2.44

7.13

0.76

3.18

0.02

0.46

1.04

0.40

0.42

0.05

Source:

Utah State Property Tax Division ‐ www.taxrates.utah.gov

City Direct Rates

Overlapping Rates

CIT

Y O

F SO

UTH

JO

RD

AN

Dir

ect a

nd O

verl

app

ing

Pro

pe

rty

Tax

Rat

es

Last Ten

Fiscal Years

(rate per $1,000 of assessed

value)


Taxpayer

Taxable Assessed

Value

Rank

Percentage of

Total City

Taxable

Assessed

Value

Taxable Assessed

Value

Rank

Percentage of

Total City

Taxable

Assessed

Value

Riverpark LLC

231,971,200

$

15.71%

Ken

necott

135,051,100

23.32%

Boyer Jordan

Heights

128,635,575

33.16%

Fred

Lam

propoulos

81,942,682

42.02%

Ebay

55,491,700

51.36%

Wal‐M

art Real Estate Business

49,978,700

61.23%

San Tropez Holdings LLC

37,541,757

70.92%

DM Town Cen

ter LLC

25,392,000

80.62%

Harvest Pointe LLC

23,207,095

90.57%

Pheasant Hollow Business Park

20,354,700

10

0.50%

Sterling Village, L.C.

26,917,000

$

11.02%

OM Enterprises

26,452,400

21.00%

High Uinta Investmen

t Properties

24,378,500

30.92%

106th South Business Park

22,476,500

40.85%

D E F Properties LLC

10,702,560

50.41%

Legacy Plaza, L.L.C.

10,592,380

60.40%

E and H Investmen

ts, L.L.C.

10,472,600

70.40%

MM (UT) PRS

10,076,500

80.38%

Legacy Retirem

ent Cen

ter, L.L.C.

9,422,900

90.36%

Darwin Datwyler

8,822,400

10

0.33%

Total

789,566,509

$

19.42%

160,313,740

$

6.08%

Sources: The City of South Jordan

and The Utah Tax Commission ‐ Property Tax Division

CIT

Y O

F SO

UTH

JO

RD

AN

Pri

nci

pal P

rop

ert

y Ta

x P

aye

rsCurren

t Year and Ten

Years Ago

2013

2004


Total Collections to Date

Fiscal Year

Ended

June 30,

Tax Levied for

the Fiscal Year Amount

Percentage

of Levy

Collections in

Subsequent

Years Amount

Percentage

of Levy

2004 2,973,839$ 2,851,618$ 95.89% 120,797$ 2,972,414$ 99.95%2005 3,226,756 3,074,510 95.28% 147,021 3,221,531 99.84%2006 3,904,953 3,752,707 96.10% 151,988 3,904,695 99.99%2007 4,321,487 4,132,213 95.62% 189,061 4,321,274 100.00%2008 6,250,207 5,949,216 95.18% 300,923 6,250,139 100.00%2009 7,259,823 6,777,184 93.35% 309,744 7,086,928 97.62%2010 7,723,824 7,330,964 94.91% 258,583 7,589,547 98.26%2011 8,512,362 8,175,797 96.05% 140,717 8,316,514 97.70%2012 9,313,139 9,068,345 97.37% ‐ 9,068,345 97.37%2013 9,648,746 9,444,798 97.89% ‐ 9,444,798 97.89%

Source: Salt Lake County Treasurer and The City of South Jordan

Collected within the Fiscal Year

of the Levy

CITY OF SOUTH JORDANProperty Tax Levied and CollectionsLast Ten Fiscal Years


Current Year and Ten Years Ago

Tax Payer*

South Jordan

Direct POS Rank

Percentage of

Total Direct

POS

South Jordan

Direct POS Rank

Percentage of

Total Direct

POS

Mining Operation 2,645,305$ 1 23.69%

Retail/Grocery 828,754 2 7.42%

Auto Sales 494,068 3 4.42%

Information Technology 489,707 4 4.39%


Auto Sales 308,828 6 2.77% 337,119$ 1 16.40%

Utility 302,237 7 2.71% 77,236 7 3.76%



Auto Sales 252,562 10 2.26% 117,657 5 5.72%

Auto Sales 164,512 11 1.47%

Retail/Grocery 163,628 12 1.47% 161,645 2 7.86%

Retail/Grocery 152,633 13 1.37% 95,612 6 4.65%


Utility 145,594 15 1.30% 72,432 8 3.52%


Auto Sales 126,485 4 6.15%

Utility 58,969 9 2.87%


Utility 34,278 11 1.67%


Auto Sales 29,105 13 1.42%

Medical/Dental 27,512 14 1.34%


Total 7,064,506$ 63.27% 1,386,278$ 67.43%

Source: Utah State Tax Commission

*Due to the confidential nature of sales tax, tax payer industries have been published rather than taxpayer names.

CITY OF SOUTH JORDANPrincipal Sales Tax Payers

2013 2004


Fiscal Year

South Jordan City

Direct Rate

Salt Lake

County

State of

Utah

2004 1.000% 0.850% 4.750%2005 1.000% 0.850% 4.750%2006 1.000% 0.850% 4.750%2007 1.000% 1.100% 4.750%2008 1.000% 1.150% 4.650%2009 1.000% 1.150% 4.700%2010 1.000% 1.150% 4.700%2011 1.000% 1.150% 4.700%2012 1.000% 1.150% 4.700%2013 1.000% 1.150% 4.700%

Sources: Utah State Tax Commissionhttp://www.tax.utah.gov/sales/rates.html

CITY OF SOUTH JORDANDirect and Overlapping Sales Tax RatesLast Ten Fiscal Years


2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Water Sales

6,230,780

$

6,606,578

$

8,383,108

$

9,199,044

$

10,920,880

$

12,486,513

$

12,377,203

$

13,729,928

$

14,046,642

$

15,663,982

$

Secondary Water Sales

632,498

616,258

647,932

647,248

616,037

624,251

658,378

674,235

718,625

727,326

Other

239,491

280,920

436,678

381,542

2,158,750

660,966

443,352

456,633

503,425

553,151

Total W

ater Fund Reven

ue

7,102,769

$

7,503,756

$

9,467,719

$

10,227,836

$

13,695,667

$

13,771,730

$

13,478,932

$

14,860,796

$

15,268,692

$

16,944,459

$

Source: City of South Jordan

Note: Other includes Finance charges and W

ater M

eter Sets

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Ch

arge

s fo

r W

ate

r Fe

es

Last Ten

Fiscal Years


Fiscal

Year

Municipal

Bldg

Authority

Excise Tax

Road

Bond

Term

Loan

Sales Tax

Increment

Bonds

Leases

Special

Assessment

Bond

RDA Tax

Increment

Bond

Water

Revenue

Bonds

Municipal

Bldg

Authority

(Mulligans)

Other

Total Primary

Government

Percentage

of Personal

Income

Per

Cap

ita

2004

9,390

$

2,145

$

2,472

$

14,085

$

1,590

$

7,170

$

4,100

$

25,570

$

12,500

$

667

$

79,688

$

10.20%

2,017

$

2005

9,065

1,880

2,681

13,725

2,041

6,740

‐

24,720

12,500

1,012

74,363

8.24%

1,692

2006

8,730

1,600

3,496

13,355

1,495

6,475

‐

23,845

8,405

489

67,889

6.90%

1,473

2007

8,385

1,310

2,659

13,645

1,231

6,100

‐

28,890

7,285

383

69,887

6.52%

1,446

2008

8,035

1,005

2,246

13,195

1,514

5,770

‐

27,775

6,130

282

65,952

5.51%

1,371

2009

7,675

685

1,842

20,845

1,094

5,266

10, 300

36, 610

5,940

172

90,429

7.51%

1,831

2010

7,305

350

1,796

19,975

712

4,765

9,525

34,905

5,745

54

85,132

6.56%

1,691

2011

6,925

‐

1,806

19,075

500

4,245

8,716

33,110

5,540

64

79,981

5.73%

1,586

2012

6,880

‐

1,948

16,570

280

3,705

7,872

31,210

5,330

91

73,886

4.86%

1,371

2013

6,725

‐

2,055

16,085

190

3,144

7,013

29,250

5,110

100

69, 672

4.20%

1,241

Notes:

Details regarding the city's outstanding debt can be found in

the notes to the finan

cial statements.

See Demographic and Economic Statistics for personal income and population data.

Governmental A

ctivities


CIT

Y O

F SO

UTH

JO

RD

AN

Rat

ios

of

Ou

tsta

nd

ing

De

bt

by

Typ

eLast Ten

Years

(dollars in

thousands except per capita)


Government Unit Debt Outstanding

Estimated

Percentage

Applicable

Estimated Share of

Direct and

Overlapping Debt

Debt repaid with property taxes

Salt Lake County 242,555,000$ 5.53% 13,401,233$ Jordan School District 74,562,600 26.62% 19,845,395 South Valley Sewer District ‐ 30.56% ‐ Central Utah Water Cons. District 266,515,000 3.23% 8,614,574

Subtotal overlapping debt 41,861,203

City direct debt 34,306,979

Total direct and overlapping debt 76,168,182$

Note: Overlapping governments are those that coincide, at least in part, with the geographic boundariesof the City of South Jordan. This schedule estimates the portion of the outstanding debt of thoseoverlapping governments that is borne by the residents and businesses. This process recognizesthat, when considering the City's ability to issue and repay long‐term debt, the entire debt burdenborne by the residents and business should be taken into account. However, this does not implythat every taxpayer is a resident‐and therefore responsible for repaying the debt‐of eachoverlapping government.

CITY OF SOUTH JORDANDirect and Overlapping Governmental Activities DebtAs of June 30, 2013


Lega

l De

bt

Mar

gin C

alcu

lati

on f

or

Fisc

al Y

ear 2

01

3

Assessed value

4,065,865

$

Deb

t lim

it (12% of assessed

value)

487,904

Deb

t applicable to limit:

Gen

eral obligation bonds

‐

Less: Amount set aside for

rep

aymen

t of general

obligation deb

t‐

To

tal net deb

t applicable to limit

‐

Legal deb

t margin

487,904

$

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Deb

t lim

it184,763

$

207,087

$

233,417

$

311,500

$

438,853

$

513,589

$

460,296

$

492,287

$

481,838

$

487,904

$

Total net deb

t applicable to limi t

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

Legal deb

t margin

184,763

$

207,087

$

233,417

$

311,500

$

438,853

$

513,589

$

460,296

$

492,287

$

481,838

$

487,904

$

Total net deb

t applicable to the lim

it

as a percentage of deb

t lim

it0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Source: Salt Lake County Auditor's Office

Notes: Under state finance law, the City's outstanding general obligation deb

t should not exceed

12% of total assessed property value

Of this percent, a m

axim

um of 4% m

ay be used for general purpose. The remaining 8% and any unused portion of the 4%

available for general purpose up to a m

axim

um of 12% m

ay be used for water, sew

er, and electrical projects.

Fiscal Year

CIT

Y O

F SO

UTH

JO

RD

AN

Lega

l De

bt

Mar

gin In

form

atio

nLast Ten

Fiscal Years

(dollars in

thousands)


Fiscal

Year

Utility

Service

Charge

Less:

Operating

Expen

ses

Net

Available

Reven

ue

Principal

Interest

Coverage

Riverpark

L.L.C.

Principal

Interest

Coverage

Sales and

Use Tax

Principal

Interest

Coverage

2004

7,073

$

4,602

$

2,471

$

110

$

670

$

3.17

786

$

300

$

486

$

1.00

3,255

$

345

$

706

$

3.10

2005

7,464

5,220

2,244

850

1,212

1.09

899

430

469

1.00

3,659

360

692

3.48

2006

9,366

5,307

4,059

875

1,183

1.97

710

265

445

1.00

4,926

370

679

4.70

2007

10,165

6,921

3,244

930

1,153

1.56

806

375

431

1.00

6,481

385

566

6.81

2008

11,883

7,807

4,076

1,115

1,244

1.73

805

395

410

1.00

7,174

450

564

7.07

2009

13,410

7,948

5,462

1,190

1,239

2.25

704

504

200

1.00

7,363

465

622

6.77

2010

13,207

8,644

4,563

1,705

1,634

1.37

704

501

203

1.00

7,470

870

906

4.21

2011

14,404

8,715

5,689

1,795

1,535

1.71

703

520

183

1.00

8,302

900

869

4.69

2012

14,765

9,734

5,031

1,900

1,459

1.50

703

540

163

1.00

9,047

945

830

5.10

2013

16,391

9,898

6,493

2,050

1,376

1.90

704

561

143

1.00

9,816

485

720

8.14

CIT

Y O

F SO

UTH

JO

RD

AN

Ple

dge

d‐R

eve

nu

e C

ove

rage

Last Ten

Fiscal Years

(dollars in

thousands)

Deb

t Service

Deb

t Service

Deb

t Service

Water Reven

ue Bonds

Special A

ssessm

ent Bonds

Sales Tax Increm

ent Bonds


Fiscal

Year

Sales and

Use Tax

Principal

Interest

Coverage

Class C Road

Funds

Reven

ue

Principal

Interest

Coverage

Project

Reven

ues

Principal

Interest

Coverage

2004

640

$

226

$

414

$

1.00

1,308

$

255

$

107

$

3.61

378

$

‐

154

$

2.46

2005

724

325

399

1.00

1,415

265

95

3.93

464

176

150

1.42

2006

2,026

1,435

591

1.00

1,324

280

82

3.65

‐

‐

‐

‐

2007

2,179

1,465

714

1.00

1,587

290

69

4.42

‐

‐

‐

‐

2008

2,173

1,505

668

1.00

1,711

305

55

4.75

‐

‐

‐

‐

2009

1,170

550

620

1.00

1,584

320

41

4.39

1,871

942

255

1.56

2010

1,167

565

602

1.00

1,648

335

25

4.57

1,954

775

453

1.59

2011

1,168

585

583

1.00

1,769

350

9

4.93

1,446

809

419

1.18

2012

1,173

610

563

1.00

‐

‐

‐

‐

1,714

844

383

1.40

2013

444

155

289

1.00

‐

‐

‐

‐

1,700

859

346

1.41

Source

: The City of South Jordan

Notes:

Details regarding the City's outstanding deb

t can be found in

the notes to the financial statemen

ts. O

perating expen

ses do not include

interest, dep

reciation, or am

ortization expen

ses.

CIT

Y O

F SO

UTH

JO

RD

AN

Ple

dge

d‐R

eve

nu

e C

ove

rage

(co

nti

nu

ed

)Last Ten

Fiscal Years

(dollars in

thousands)

Tax Increm

ent Reven

ue Bond

Deb

t Service

Deb

t Service

MBA Lease Reven

ue Bonds

Excise Tax Road

Bond

Deb

t Service


Calander

Year Population Personal Income

Per Capita

Personal

Income

Unemployment

Rate

2004 36,313 781,497,383$ 21,521$ 3.3%2005 39,777 902,075,716 22,678 2.8%2006 43,556 1,054,287,865 24,205 2.3%2007 46,157 1,199,566,033 25,989 1.6%2008 48,098 1,197,864,419 24,905 1.9%2009 49,382 1,204,495,728 24,391 2.7%2010 50,333 1,297,566,499 25,780 4.3%2011 50,418 1,395,029,694 27,669 6.4%2012 53,902 1,520,582,366 * 28,210 5.8%2013 56,132 1,657,434,779 * 29,527 4.8%

Sources: Population info from South Jordan Community Development DeptUnemployment rate ‐ www.bls.gov/data/home.htm (June's numbers)Personal income ‐ http://tax.utah.gov/econstats/income/fed‐returns‐2000

* 2012 and 2013 personal income amounts not available; estimatedbased on average increase from previous years

CITY OF SOUTH JORDANDemographic and Economic StatisticsLast Ten Calendar Years


Employer Employees Rank

Percentage of

Total City

Employment Employees Rank

Percentage of

Total City

EmploymentJordan School District 1,303 1 6.39% 897 2 7.85%Ultradent Products 1,104 2 5.41% 680 4 5.95%Merit Medical 1099 3 5.39% 850 3 7.44%Rio Tinto 605 4 2.97%Extend Health 462 5 2.26%South Jordan City 453 6 2.22% 287 5 2.51%Wal‐Mart Supercenter 413 7 2.02%Morgan Stanley Smith Barney 400 8 1.96%Dealer Track Systems 367 9 1.80%University of Utah Healthcare 333 10 1.63%Convergys 1,600 1 14.00%Altius Health Plans 170 6 1.49%Harmons 120 7 1.05%Ikon Office Solutions 100 8 0.87%Smith's Food and Drug Center 85 9 0.74%Total 6,539 32.05% 4,789 34.04%

Source: The City of South Jordan

CITY OF SOUTH JORDANPrincipal EmployersCurrent Year and Ten Years Ago

2013 2004


2004

2005

2006

2007¹

2008

2009

2010

2011

2012

2013

Function/Program

Gen

eral governmen

t6.00

5.50

9.75

8.25

8.25

10.25

10.25

10.25

9.16

9.22

Managem

ent Services

20.50

18.50

20.50

23.00

32.00

19.00

19.00

17.00

19.00

17.00

Finance

4.00

7.00

5.00

8.00

9.00

11.00

8.00

9.00

7.00

9.00

Planning

6.00

9.00

7.00

5.00

4.50

4.50

6.00

6.00

7.00

7.00

Building

7.00

8.00

8.00

10.00

8.00

8.00

9.00

12.00

12.00

13.00

Legal²

6.00

6.00

7.00

7.00

6.00

6.48

6.45

Municipal Court²

7.80

6.00

6.00

8.00

7.00

6.04

6.15

Other

7.00

7.00

7.00

11.00

15.00

24.00

22.00

19.00

23.00

24.34

Police Officers

37.00

43.00

41.00

48.00

50.00

49.00

48.00

50.00

47.00

50.00

Civilians

13.75

18.50

19.25

10.75

10.75

11.75

10.75

8.91

14.06

14.42

FireFirefighters and Officers

34.00

34.00

44.00

42.00

46.00

46.00

45.00

47.00

45.18

47.30

Civilians

0.00

0.50

1.50

2.00

2.00

2.00

2.00

1.34

1.00

1.00

Refuse Collections

1.00

1.00

1.00

2.00

3.00

2.00

2.00

2.00

2.00

2.00

Other Public W

orks

Engineering

11.00

12.75

15.50

19.50

20.00

20.00

19.00

18.00

17.00

16.00

Streets²

12.00

12.00

13.00

12.00

12.00

13.00

13.16

Storm

Drain²

5.00

8.00

10.00

8.00

8.00

8.00

9.16

Other

20.00

32.00

39.00

12.00

11.00

11.00

13.00

13.00

14.00

13.37

Red

evelopmen

t1.50

1.50

1.00

1.00

2.00

1.00

1.00

1.00

2.00

2.00

Parks and Recreation

22.00

76.00

76.50

45.50

53.25

47.00

50.25

58.25

72.91

66.80

Water

14.00

14.00

14.00

17.00

17.00

19.00

19.00

18.00

19.00

18.16

Total

204.75

288.25

310.00

295.80

323.75

321.50

319.25

323.75

344.83

345.53


HR Dep

artm

ent

¹ Rep

orting modified to m

atch actual City budgets, breakout additional functions, and not include seasonal employees

² New

function breakout

Full‐time‐Equivalen

t Em

ployees as of June 30

CIT

Y O

F SO

UTH

JO

RD

AN

Full‐

tim

e‐E

qu

ival

en

t C

ity

Go

vern

me

nt

Emp

loye

es

by

Fun

ctio

n/P

rogr

amLast Ten

Fiscal Years


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Function/Program

General governmentBuilding permits issued 1,380 1,522 1,772 1,678 1,397 1,064 1,086 1,058 1,296 1,611 Building inspections conducted 29,077 34,368 46,760 55,350 47,269 41,852 52,873 37,178 50,533 54,680

PolicePhysical arrests 1,060 988 1,008 984 1,118 1,248 960 927 799 810 Parking violations 246 454 586 902 601 401 558 490 381 624 Traffic violations 13,785 14,179 12,485 11,466 12,882 11,892 10,395 10,327 9,247 8,712

FireEmergency responses 1,790 1,886 2,174 2,256 2,315 2,472 2,401 2,546 2,020 2,561 Fires extinguished 147 132 134 146 121 123 807 981 110 84 Inspections 1,669 2,148 2,860 2,127 951 1,474 1,237 1,537 272 693

Other public worksStreet resurfacing (miles) 3 4 6 39 2 13 2 3 7 26 Potholes repaired 1,876 1,934 2,080 1,700 14,720 10,200 12,000 2,400 996 501

Parks and recreationAthletic field permits issued 6 6 6 7 8 6 7 8 7 7 Community center admissions 5,109 5,262 5,420 7,590 11,364 14,176 16,433 18,011 22,263 22,144

WaterNew residential connections 275 801 808 New commerical connections 5 19 97 New connections 280 820 905 1,035 872 689 1,180 840 726 673 Water main breaks 150 150 132 74 126 222 35 130 117 77 Average daily consumption (thousands of gallons) 8,014 7,645 9,547 12,431 11,378 10,587 10,484 9,659 10,830 13,417Peak daily consumption (thousands of gallons) 18,433 17,583 22,148 24,194 27,139 25,382 26,523 27,317 25,370 30,080


Note: Community Center admissions is an estimate

Fiscal Year

CITY OF SOUTH JORDANOperating Indicators by Function/ProgramLast Ten Fiscal Years


2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Function/Program

Police

Stations 1 1 1 2 2 2 2 2 2 2

Sub station 1 1 1 ‐ ‐ ‐ ‐ ‐ ‐ ‐

Patrol units 38 44 44 49 51 52 52 52 52 52

Fire Stations 2 2 2 2 2 2 2 2 2 2

Other public works

Streets (City‐maintained miles) 160 170 185 195 207 216 220 222 225 243

Streetlights 2,150 2,477 3,785 3,965 4,096 4,230 4,355 4,521 4,756 5,001

Storm drain (miles) 92 100 104 117 123 125 125 126 127 118

Traffic signals 10 10 12 15 12 13 10 15 15 26

Parks and recreation

Acreage 260 298 388 388 388 400 400 400 400 400

Playgrounds 14 15 16 16 16 16 18 18 20 20

Baseball/softball diamonds 9 9 9 9 9 10 10 10 10 10

Soccer/football fields 9 9 9 9 9 9 9 9 9 9

Basketball/tennis courts 9 11 11 11 11 11 12 12 12 12

Fishing ponds ‐ 2 2 2 2 2 2 2 2 3

Community centers 1 1 1 1 1 1 1 1 1 1

Water

Culinary water lines (miles) 187 219 244 267 277 279 306 310 313 320

Irrigation water lines (miles) 86 93 95 101 157 161 98 98 167 115

Fire hydrants 1,894 2,115 2,416 2,475 2,672 2,805 2,836 2,897 2,929 3,091

Storage capacity (thou. of gallons) ‐ 14,000 14,000 18,000 18,000 18,000 18,000 33,600 33,600 33,600


Fiscal Year

CITY OF SOUTH JORDANCapital Asset Statistics by Function/ProgramLast Ten Fiscal Years


In

tern

al Co

ntro

l and C

om

plian

ce

Re

po

rts

City of South Jordan, Utah Finance Department

1600 W Towne Center Drive South Jordan, UT 84095‐8697

Phone: (801) 254‐3742

Fax: (801) 253‐5250 www.sjc.utah.gov

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